Lawyers representing Ripple in its ongoing legal battle with the United States Securities and Exchange Commission (SEC) have argued that the regulator has not met the requirements necessary to request an appeal. The legal team made this assertion in a filing with the U.S. District Court for the Southern District of New York on September 1st. Ripple’s lawyers stated that the SEC’s grounds for an appeal were primarily based on its “dissatisfaction” with the judge’s decision that Ripple’s XRP token does not qualify as a security for retail investors. They further noted that the “exceptional circumstances required for interlocutory appeal” were absent in this case and called on the judge to deny any request for an appeal or a stay.
According to Ripple, the SEC has not even attempted to meet the standard for a stay, despite this omission being identified by the Individual Defendants in their pre-motion letter. Ripple jointly opposes the SEC’s request with the Individual Defendants. The legal team provided a memo to the court, reinforcing their argument against an appeal and citing the lack of exceptional circumstances necessary to proceed with it.
In August, the SEC moved to appeal and stay a previous court decision made in July by Judge Analisa Torres. In her ruling, she determined that XRP should not be considered a security under the SEC’s guidelines. At the time, the SEC argued that there were substantial differences of opinion on the laws in question.
The SEC initiated a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020. This action led to several exchanges delisting the XRP token to avoid potential legal complications. However, following Judge Torres’ ruling, many of these same exchanges announced their intention to relist the token or considered doing so in the future.
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Garlinghouse expressed his frustration with the SEC’s actions, stating that many in the U.S. crypto community have had to resort to the legal process to demonstrate that the SEC is consistently wrong on both the facts and the law.
The SEC has been targeting numerous crypto firms in 2023 over allegations of securities violations, including Binance and Coinbase. Another recent development was asset manager Grayscale’s court victory against the SEC. Following an appeal, the court ordered a review of Grayscale’s application for a Bitcoin (BTC) exchange-traded fund.
The civil lawsuit between the SEC and Ripple is still ongoing. Judge Torres has proposed a jury trial for the case to begin in the second quarter of 2024.
It is important to note the broader context of this legal battle. Ripple’s case against the SEC is part of a larger trend of increased scrutiny and regulatory action against crypto companies. The outcome of this case could have significant implications for the classification of digital assets and the regulation of the crypto industry as a whole.
Furthermore, the case highlights the challenges and complexities faced by regulators in determining the legal status of cryptocurrencies. The SEC and other regulatory bodies are grappling with the task of applying existing securities laws to a rapidly evolving technological landscape. The outcome of this case could potentially provide more clarity on how cryptocurrencies will be regulated moving forward.
In conclusion, Ripple’s legal team has argued that the SEC has not met the requirements necessary to request an appeal in its lawsuit against Ripple. They have called on the judge to deny any appeal or stay. This case is part of a broader trend of regulatory action against crypto companies, and its outcome could have significant implications for the crypto industry as a whole.
