The SEC filed a notice of appeal on Wednesday, October 2nd, and XRP fell to a low of $0.5075 on Thursday, October 3rd. On Friday, U.S. attorney James Phelan shared documents from the U.S. Court of Appeals for the Second Circuit that contributed to Saturday’s loss.
Notably, the document revealed the SEC’s plans to appeal the summary judgment and final judgment.
Summary Judgment: Important Details
On July 13, 2023, Judge Annalisa Torres ruled that programmatic sales of XRP did not meet Step 3 of the Howie test. In response, the SEC filed an interlocutory motion asking the court for permission to appeal the judgment. However, Judge Torres denied the request, and the SEC had to wait for a final ruling before proceeding with the appeal.
Former SEC attorney Mark Feigel responded to a post by X stating that the SEC was appealing the amount of the penalty, not the XRP non-security decision.
“The SEC is appealing the ruling that programmatic sales are not securities sales. (They could also challenge disgorgement and penalties, but that is not the purpose of the appeal.)”
Mr. Fagel added:
