Ripple asks court to toss SEC’s appeal in XRP case

abdelaziz Fathi

Ripple Labs has opposed the U.S. securities regulator’s recent move to go for an interlocutory appeal about the summary judgment made by U.S. District Court Judge Analisa Torres.

In a letter sent on August 16 to Judge Torres in the Southern District of New York, Ripple’s lawyers explained that because the Securities and Exchange Commission (SEC) didn’t meet the requirements of the Howey test in relation to Ripple’s distribution of XRP — a legal aspect — the court should say no to the SEC’s request to file an interlocutory appeal.

The legal notice further reads: “Having failed to meet its burden to present facts that would support stretching Howey to cover all of Defendants’ distributions of the digital asset XRP, the SEC now does an about-face and rushes to appeal what it claims (at 1) is a purely “legal question” affecting all other digital-asset cases. The Court should reject this gambit because the SEC raised no such question.2 The SEC can appeal the Court’s decision in the normal course after a final judgment with a full record.”

“We oppose the SEC’s request for an interlocutory appeal. There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal,” added Ripple Chief Legal Officer Stuart Alderoty.

An interlocutory appeal occurs when a decision made by a trial court is appealed while other parts of the case are still ongoing. This type of appeal is allowed only under certain situations. As such, Ripple’s legal team believes it would be better for the SEC to seek an appeal after there’s a final judgment and a complete record in place.

On August 10, the U.S. Securities and Exchange Commission (SEC) filed an “interlocutory appeal” to undo a judge’s recent ruling on Ripple’s sales of its XRP cryptocurrency. The SEC is seeking permission to appeal a portion of the decision while allowing other aspects of its case against Ripple to proceed to trial.

The SEC’s move comes after U.S. District Judge Analisa Torres issued a somewhat divided ruling, stating that certain programmatic sales of XRP didn’t violate securities laws, while direct sales to institutions did fall under securities laws.

The SEC’s appeal request follows its disagreement with the initial verdict, claiming that the court’s decision was “wrongly decided.” The agency argues that the ruling goes against “fundamental securities laws principles” such as the Howey test, which determines what falls under the category of an investment contract.

Ripple, on the other hand, remains confident in the judge’s ruling and expects that an appeals court will affirm or even strengthen it. The court’s approval is required for the appeal to proceed, followed by the U.S. Court of Appeals for the Second Circuit.

Read this next

blockdag

Groundbreaking Innovations in BlockDAG’s Keynote 2 Drive Over 1120% Increase; Toncoin & Celestia Prices Rise

Explore BlockDAG’s Keynote 2, detailing the cutting-edge technical advancements that led to a significant presale boom. Discover how these innovations have driven BlockDAG’s success, and get the latest updates on Celestia and Toncoin prices.

blockdag

BlockDAG X1 Beta App Pioneers in Crypto Mining Amidst Ethereum vs Solana Rivalry and XRP Price Increase

Dive into the details of BlockDAG’s X1 beta app’s global tech presence in Shibuya, Las Vegas, and Piccadilly Circus and its pre-sale triumph during a spike in Ethereum, Solana, and XRP values.

blockdag

BlockDAG Hits $50.4M with Active Dev Release & Community Engagement; Binance Coin Price Drops and JasmyCoin Rallies

Explore how BlockDAG bolsters its reputation through a steady stream of Development releases. Get insights on Binance Coin price trends and the recent Jasmy Coin rally.

Crypto Insider

5 Upcoming Crypto for 10x Gains: How $1000 Can Become $10,000

Consider a situation where a $1000 investment may grow to a whopping $10,000. Astute Bitcoin investors have experienced this as a reality rather than a fantasy.

Retail FX

Weekly Roundup: eToro links up with Elon Musk, US crackdown on Russian FX

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.

blockdag

Must-Watch Top 5 Crypto Picks for Q2 2024 Featuring BlockDAG, Toncoin, Solana and More

Dive into BlockDAG’s meteoric rise and explore other promising altcoins like Pepe, Toncoin, Solana, and Render for superior returns.

Retail FX

Clone of Admiral Markets draws FCA attention

The United Kingdom’s financial markets watchdog today unmasked another fraudulent entity, this time bringing to light a clone firm that has been posing as FCA-‎authorised brand, Admiral Markets UK Ltd.

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.

<