The Ripple legal team has pushed back against the Securities and Exchange Commission’s (SEC) request to seek an interlocutory appeal in their ongoing legal fight, arguing that the regulator hasn’t satisfied the requirements to file an appeal.
The Nitty-Gritty Of Ripple’s Opposition To SEC’s Appeal Move
Ripple has filed in opposition to the U.S. Securities and Exchange Commission’s request to appeal the ruling that the San Francisco-based blockchain payments firm didn’t break securities laws in making XRP available to retail traders by putting it on exchanges.
In a new Friday document filed with the U.S. District Court for the Southern District of New York, Ripple’s lawyers argued that the SEC’s grounds for an appeal primarily rested on “dissatisfaction” with the judge’s decision that XRP is not necessarily a security on its face. They further noted that the “exceptional circumstances” required for an interlocutory appeal are not present in the case and urged the judge to reject any request to make an appeal or stay:
“The SEC has not even attempted to meet the standard for a stay, even after the Individual Defendants identified that omission in their pre-motion letter. The Individual Defendants write separately to oppose the SEC’s request. Ripple joins that opposition.”
In August, America’s top financial watchdog indicated that it was seeking an interlocutory appeal of Judge Torres’ ruling, stating that the outcome of the Ripple suit could affect other pending cases involving leading cryptocurrency trading companies.
At the time, the commission argued that an appellate review was warranted “because they involve controlling questions of law as to which there are substantial grounds for difference of opinion, and obtaining an appellate ruling on these issues now may materially advance the ultimate termination of this litigation.”
Judge Analisa Torres set a trial date for the case in the second quarter of 2024. Meanwhile, the SEC has until Sept. 9 to respond to Ripple’s filing on Friday.
So, What’s Next?
Having said that, the Friday filing is the latest turn in Ripple’s protracted courtroom war with the SEC, which began when the regulator sued the fintech firm in December 2020. The SEC accused Ripple and its two chief executives, CEO Brad Garlinghouse and executive chairman Chris Larsen, of raising $1.3 billion via the sale of unregistered securities in the form of the XRP token.
In the midst of all the aforementioned events, XRP holders’ attorney, John E. Deaton, is convinced that the SEC’s request will not be granted.
It remains to be seen what fate, or the American judicial system, has in store for Ripple and XRP. As of press time, XRP is trading at $0.5015, with the fifth-largest cryptocurrency showcasing a seven-day decline of roughly 4.8%.