In its most current court filing, the legal group representing Ripple Labs – the business behind the XRP token – argued that the United States Securities and Exchange Commission (SEC) doesn’t have the premises to ask for an appeal.
This comes as the SEC wants to conflict Ripple’s partial success after Judge Annalisa Torres ruled – in July – that XRP doesn’t categorize as a security when offered to retail financiers.
In its interlocutory appeal, the commission specified that an appeal was warranted “because they involved controlling questions of law as to which there are substantial grounds for difference of opinion.”
Ripple Calls For Denial Of SEC’s Request To Appeal Or Stay
On Friday, September 1, Ripple’s attorneys specified in a brand-new filing to the United States District Court for the Southern District of New York that the Securities and Exchange Commission’s appeal demand is simply based upon “dissatisfaction” with the court’s choice.
The court filing read:
The expected considerable ground for argument is simply the SEC’s frustration with the Court’s application of Howey to the majority of Defendants’ deals in XRP.
In its appeal demand, the SEC declares it is pursuing what is just a “legal question” appropriate to every digital possession case. However, Ripple’s legal group thinks that the court’s summary judgment does not present “a controlling question of law suitable for interlocutory appeal”.
Furthermore, Ripple stated that the commission has actually not attempted to satisfy the requirement for a stay, even after the Individual Defendants (CEO Brad Garlinghouse and co-founder Chris Larsen) pointed it out in their pre-motion letter.
Ultimately, the offenders’ lawyers asserted that “exceptional circumstances required for interlocutory appeal” were nonexistent in the demand. For this factor, they advised the judge to reject any ask for an appeal or remain.
Judge Torres Will Not Grant This Interlocutory Appeal, John Deaton Says
Ripple’s most current opposition to the SEC has actually created responses from popular figures in the crypto-legal area, consisting of pro-XRP legal representative John Deaton and Coinbase’s primary legal officer Paul Grewal.
On Friday, Deaton expressed – by means of a series of posts on X (previously Twitter) – that Ripple’s opposition versus the SEC’s appeal demand is strong. When asked by a random X user if the commission’s appeal will get accredited, Deaton responded “No way, IMO”.
No method IMO.
— John E Deaton (@JohnEDeaton1) September 2, 2023
Grewal, Coinbase’s CLO, pointed out the irregular way in which the SEC has actually been managing its cases. “Nothing but ‘facts and circumstances’ one day. Until it’s all a ‘pure question of law’ the next,” he stated.
Furthermore, Grewal hailed the work of the Ripple legal group, stating they “appropriately lay waste to this (SEC’s) hypocrisy”.
As of this writing, XRP is trading at $0.4952, with a 5% cost decrease in the previous week.
XRP cost trades underneath the $0.5 mark | Source: XRPUSDT chart from TradingView
Featured image from iStock, chart from TradingView