The United States Securities and Exchange Commission (SEC) has taken a step to seek an interlocutory appeal in its ongoing case against Ripple Labs. While this move has ignited discussions in the crypto community, legal experts within the industry express confidence in Ripple’s stance, emphasizing that the XRP token is not a security.

On August 9th, the SEC sent a letter to Judge Analisa Torres, indicating its intention to appeal the court decision and requesting a hold on the case during the appeal process. This development has led some to speculate whether the SEC’s appeal aims to challenge the “non-security” classification of XRP. However, legal professionals familiar with the case have clarified that this is not the case.

Notably, prominent crypto lawyer Jeremy Hogan has outlined that the appeal’s focus and the determination of XRP’s status are separate matters. Hogan has explained that even if the SEC were to win the appeal regarding sales issues, Ripple might be restricted from facilitating sales through exchanges. Nevertheless, Hogan believes that exchanges could continue listing XRP as long as Ripple isn’t involved in the sales.

Another legal expert, Oscar Franklin Tan, Chief Legal Officer of Enjin, a non-fungible token (NFT) platform, provided insights into the complexities surrounding the SEC’s appeal. Tan clarified that appeals generally occur after a case concludes, but in this instance, the SEC’s appeal is interlocutory, indicating that they want to appeal even before the case’s conclusion.

Tan elaborated that the appeal’s impact on the case’s trajectory hinges on momentum. He noted that if the appeal is allowed, the party that wins the appeal could gain momentum in the main case. While Hogan is confident that the appeal won’t alter XRP’s non-security status, Tan believes that the SEC’s underlying objective is to challenge this classification.

Tan pointed out that the SEC is currently leveraging conclusions from the Terraform Labs case against the judge in the XRP case. The SEC contends that a higher court should resolve the differing conclusions. However, Tan suggests that the SEC should have provided clearer guidance before resorting to legal action, and it should allow the court process to unfold naturally.

Ripple’s Chief Legal Officer, Stuart Alderoty, responded to the situation by encouraging the community to “stay tuned.” He also revealed that Ripple will file its response with the court in the upcoming week. This ongoing legal battle continues to be closely watched by both the crypto industry and legal observers, as it has broader implications for the regulatory landscape surrounding digital assets.