Last month a New York court found in favor of Ripple that XRP distributions through crypto exchanges were not sales of securities. Now the SEC wants an interlocutory appeal of the decision, and yesterday Ripple filed a letter arguing that it doesn’t satisfy the grounds for an appeal at this stage. Ripple’s lawyers split their arguments into three sections and our analysis is that Ripple might possibly have a point on one of the arguments, which could be sufficient to block an appeal.
So the first question is, what is an interlocutory appeal? It’s an appeal of a non-final order during the course of litigation. And it’s pretty rare, so there are special grounds outlined in 28 U.S. Code Section 1292(b) and the Bar Association also wrote on the topic.
Here’s the relevant legislation wording:
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