Ripple Challenges SEC’s Interlocutory Appeal, Cites Lack of Legal Grounds
Ripple filed its response to the SEC’s anticipated interlocutory appeal.
In a letter dated August 16, Ripple’s legal team argued that the SEC’s failure to meet the Howey test’s requirements about the distribution of XRP renders the appeal unnecessary.
Ripple Labs has contested the U.S. Securities and Exchange Commission’s (SEC) move to seek an interlocutory appeal following the recent summary judgment by U.S. District Court Judge Analisa Torres.
In a letter dated August 16, Ripple’s legal team contends that the SEC’s inability to fulfill the Howey test’s criteria regarding XRP distribution makes the appeal superfluous. The company asserts that it should proceed with the appeal once a final judgment is reached, accompanied by a comprehensive record.
In correspondence addressed to the Southern District of New York, Ripple, along with its CEO Brad Garlinghouse and Co-founder/Executive Chairman Chris Larsen, opposes the appeal and presents three primary arguments.
They emphasize the absence of novel legal questions in the appeal. Moreover, Ripple’s legal team asserts that the SEC has not provided a compelling rationale for their dissenting view.
The company argued that an immediate appeal would not expedite the ongoing litigation process. Stuart Alderoty, Ripple’s Chief Legal Officer, states that no exceptional circumstances warrant deviation from established legal procedures.
The case stems from a partial victory Ripple secured in July when the court ruled XRP itself was not a security. However, certain sales of XRP tokens might only be considered securities under specific circumstances.
At the time of writing, XRP’s was priced approximately at $0.59.
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