SEC Seeks to Appeal Ripple-XRP Ruling — Requests Stay of Proceedings
The U.S. Securities and Exchange Commission (SEC) has sent a letter to District Judge Analisa Torres seeking permission to file an interlocutory appeal in the SEC v. Ripple case over XRP. In addition, the securities regulator’s motion will “seek to stay the district court proceedings.”
SEC Seeks to Appeal Ruling in Ripple-XRP Case
The U.S. Securities and Exchange Commission (SEC) sent a letter to District Judge Analisa Torres on Wednesday seeking permission to file an interlocutory appeal to her judgment in the SEC v. Ripple case over XRP. An appeal is described as interlocutory when it is made before all claims are resolved to all parties. The letter states:
Specifically, the SEC seeks to certify the court’s holding that Defendants’ ‘Programmatic’ offers and sales to XRP buyers over crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services did not involve the offer or sale of securities under SEC v. W.J. Howey Co., 328 U.S. 293 (1946).
“Interlocutory review is warranted here. These two issues involve controlling questions of law on which there is substantial ground for differences of opinion, as reflected by an intra-district split that has already developed,” the securities regulator claimed.
The SEC further stated that “the motion will also seek to stay the district court proceedings,” noting that “a stay of the proceedings in this court is warranted.”
Crypto Law explained on Twitter what the SEC’s stay request means: “They are requesting a stay of all other proceedings in Torres’ court on the case, meaning remedies process and the trial would pause. Just because they request a stay doesn’t mean they’ll get it. They might get a temporary stay while their petition for the interlocutory appeal is decided on, but that would not be a long one. In any case, if they hadn’t asked for a stay then their arguments for urgency in requesting the interlocutory appeal would seem pretty weak. In case you’re wondering, a stay has no effect on Torres’ ruling.”
Ripple Labs has one week to respond to the SEC letter. Stuart Alderoty, Ripple’s chief legal officer, tweeted Wednesday: “The SEC does not have the ‘right’ to appeal just yet which is why they are asking permission to file an ‘interlocutory’ appeal. Ripple will file its response with the court next week. Stay tuned.”
Do you think the SEC will successfully appeal Judge Analisa Torres’ Ripple-XRP ruling? Let us know in the comments section below.
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Rep. Maxine Waters criticizes PayPal’s stablecoin, demands regulation on par with financial institutions
Democratic U.S. Congresswoman and House Financial Services Committee Ranking Member Maxine Waters criticized PayPal’s stablecoin on Aug. 9.
Waters said in a statement:
“I am deeply concerned that PayPal has chosen to launch its own stablecoin while there is still no Federal framework for regulation, oversight, and enforcement of these assets.”
She added that Federal oversight and enforcement against PayPal’s stablecoin is necessary to protect users and guard against financial stability concerns. Waters added that consumers are at risk if there is no legislation to protect them, emphasizing that stablecoins “represent the issuance of a new form of money.”
Waters’ demand for regulation was in part based on PayPal’s massive reach. She noted that PayPal has 435 million customers globally and that its customer base outnumbers all online accounts held by customers of “megabanks.”
However, PayPal has stated that its stablecoin will only be available to users in the U.S., which means the stablecoin may be used by a smaller group in practice.
Waters criticizes Republican bill
Waters noted that, for 15 months, she and other Democrats on the House Financial Services Committee have been preparing legislation to protect users.
She criticized Republican committee members for advancing a separate bill that essentially endorses stablecoins, including PayPal’s. In Waters’ view, this bill restricts the Federal Reserve from exercising its enforcement and oversight duties, thereby “undermining its role” as the central bank. Waters also warned that the broader adoption of stablecoins under the Republican bill could impact inflation and employment.
Waters’ statements concern a bill House Financial Services Committee Chair Patrick McHenry promoted on Aug. 7, shortly after PayPal’s own announcement.
Despite her concerns about the Republican bill, Waters said asserted that the bill has “no chance” of entering law and requested further bipartisan negotiations.
The post Rep. Maxine Waters criticizes PayPal’s stablecoin, demands regulation on par with financial institutions appeared first on CryptoSlate.
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