Lawyers claimed the SEC’s justification for the appeal was based on “dissatisfaction” with a court ruling from July that the XRP cryptocurrency did not mainly meet the criteria for classification as a security.
Ripple, the blockchain company at the center of a high-stakes legal battle with the United States Securities and Exchange Commission (SEC), has thrown down the gauntlet in its latest move. Lawyers representing Ripple have fired back, contending that the SEC has failed to meet the requirements necessary to seek an appeal in the ongoing lawsuit.
In a filing made on September 1 with the U.S. District Court for the Southern District of New York, Ripple’s legal team made a pointed argument. They asserted that the SEC’s basis for seeking an appeal largely boiled down to “dissatisfaction” with a judge’s previous ruling. This ruling determined that XRP, Ripple’s digital token, did not fall under the classification of a security concerning sales to retail investors. Ripple’s lawyers firmly maintained that the “exceptional circumstances required for interlocutory appeal” were conspicuously absent in this case. They have called upon the judge to both deny any appeal request and halt further proceedings.
Ripple’s legal representatives did not mince words when challenging the SEC’s approach. They emphasized that the SEC had not even made an attempt to meet the standard required for a stay. This stance remained unchanged even after the Individual Defendants highlighted this omission in their pre-motion letter. In a show of unity, Ripple joined in opposition to the SEC’s request, underlining the company’s unwavering commitment to the legal battle.
Related: Ripple CTO's Comments on SEC Appeal Could Prolong Legal Fight
Ripple’s Ongoing Struggle
The legal showdown between Ripple and the SEC has been marked by twists and turns. The SEC initiated its lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020. This move led to numerous cryptocurrency exchanges delisting the XRP token, aiming to sidestep potential legal complications. However, a significant shift occurred in July when Judge Analisa Torres issued a ruling that largely excluded XRP from the SEC’s definition of a security. In the wake of this decision, many of the previously delisting exchanges expressed their intent to relist XRP or explore this option in the future.
Ripple’s Chief Executive Officer, Brad Garlinghouse, has been vocal about the need to challenge the SEC’s actions. He recently stated that it’s disheartening that so many members of the U.S. cryptocurrency community have had to resort to legal means to demonstrate the SEC’s perceived overreach and consistent misinterpretation of facts and laws. The legal tussle between Ripple and the SEC is far from over, as Judge Torres has proposed a jury trial for the case, set to commence in the second quarter of 2024.