In August, the Securities and Exchange Commission (SEC) filed an interlocutory appeal against Judge Torres’ ruling in favor of Ripple Labs. This appeal has now been met with opposition from Ripple and its executives.
Ripple has stated that the SEC does not have the right to an appeal as there are no “exceptional circumstances” present. The SEC had argued that an appeal was necessary because it involved controlling questions of law and could affect its cases against Terraform, Coinbase, and Binance. However, Ripple disagrees, stating that the summary judgment does not present a controlling question of law that would warrant an appeal. They argue that a pure question of law arises when the court can review and decide quickly without having to study the record. In this case, the appellate court will have to study the record before deciding, just like Judge Torres did.
Ripple also challenges the SEC’s claim that an immediate appeal would expedite the case’s resolution. They argue that the SEC has shown its intent to continue its lawsuit against Ripple even if the company succeeds in its appeal. Therefore, Ripple believes that the appeal should be rejected as it will not hasten the lawsuit.
Furthermore, Ripple asks the court to deny the SEC’s request for a stay on Judge Torres’ ruling. They argue that the SEC has not met the standard for a stay and therefore it should be denied.
If the approved interlocutory appeal proceeds, the focus will be on Judge Torres’ ruling that Ripple’s programmatic sales and other distributions did not constitute an investment contract. This ruling could have significant implications for the crypto industry. Programmatic sales include those made through exchanges. If the SEC gets a ruling in its favor, it would give them the momentum to further their case against Coinbase and Binance, where they allege both exchanges offered securities.
However, some experts predict that the SEC will once again lose upon appeal. They believe that the court will have access to the evidence presented in the lower court and will determine that the SEC did not provide enough proof to support its arguments.
Overall, the SEC’s interlocutory appeal against Judge Torres’ ruling in favor of Ripple Labs has been met with opposition from Ripple itself. Ripple argues that the exceptional circumstances required for an appeal are not present and that the summary judgment does not present a controlling question of law. They also challenge the SEC’s claim that an immediate appeal would expedite the case and ask the court to deny the SEC’s request for a stay. If the appeal proceeds, the focus will be on the ruling regarding Ripple’s programmatic sales and its implications for the crypto industry. However, experts believe that the SEC will not succeed on appeal due to a lack of supporting evidence.