In a recent court filing, Ripple Labs, the company behind the XRP token, argued that the United States Securities and Exchange Commission (SEC) does not have sufficient grounds to request an appeal. This comes after the SEC challenged Ripple’s partial victory when Judge Annalisa Torres ruled in July that XRP does not classify as a security when sold to retail investors.
In its interlocutory appeal, the SEC stated that an appeal was necessary because it involved controlling questions of law with substantial grounds for difference of opinion. However, Ripple’s legal team countered by stating that the SEC’s appeal request is driven by dissatisfaction with the court’s decision. They argued that the supposed substantial ground for disagreement is merely the SEC’s dissatisfaction with the court’s application of the Howey test to most of the transactions involving XRP.
Ripple’s lawyers further contended that the court’s summary judgment does not present a controlling question of law suitable for interlocutory appeal, despite the SEC’s claim that it is pursuing a legal question applicable to every digital asset case. Additionally, Ripple stated that the SEC had not met the standard for a stay, even after its CEO Brad Garlinghouse and co-founder Chris Larsen pointed it out in their pre-motion letter. The defendants’ attorneys firmly asserted that exceptional circumstances required for an interlocutory appeal were nonexistent and urged the judge to deny any request for an appeal or stay.
Prominent figures in the crypto-legal space, including pro-XRP lawyer John Deaton and Coinbase’s chief legal officer Paul Grewal, have reacted to Ripple’s latest opposition to the SEC. Deaton expressed his belief that Ripple’s opposition is strong and stated that in his opinion, the commission’s appeal will not be certified. Grewal pointed out the inconsistent manner in which the SEC has been handling its cases and commended the Ripple legal team for exposing the SEC’s hypocrisy.
As of the time of writing, XRP is trading at $0.4952, experiencing a 5% price decline in the past week.
Overall, Ripple’s legal team is vigorously contesting the SEC’s request for an appeal, arguing that the commission lacks adequate grounds and has shown dissatisfaction with the court’s decision. The response from prominent figures in the crypto-legal space suggests that there is support for Ripple’s position and skepticism towards the SEC’s handling of the case. The outcome of this ongoing legal battle will have significant implications for the classification and regulation of digital assets like XRP.