Ripple’s legal representatives, amidst the ongoing legal battle with the United States Securities and Exchange Commission (SEC), have put forth a contention suggesting that the regulatory body lacks the necessary grounds to pursue an appeal.
The legal team for Ripple filed a document on September 1 with the U.S. District Court for the Southern District of New York, asserting that the SEC’s motivation for seeking an appeal predominantly stems from dissatisfaction with a judge’s prior decision.
This decision had ruled that the XRP token did not meet the criteria to be classified as a security in relation to sales directed at retail investors.
Ripple’s lawyers emphasized that the requisites for an “interlocutory appeal,” which demands exceptional circumstances, are conspicuously absent in this particular case.
The legal representatives urged the presiding judge to dismiss any request for an appeal or a stay based on these grounds.
In unity with the Individual Defendants, who are also part of the lawsuit, Ripple vociferously opposed the SEC’s appeal request.
This development follows a sequence of events where the SEC attempted to contest and postpone a July ruling by Judge Analisa Torres.
The July decision concluded that XRP did not primarily qualify as a security as outlined by the SEC’s guidelines.
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The regulatory agency had then asserted that substantial differences of opinion on the relevant laws justified their pursuit of an appeal.
The lawsuit, initially initiated by the SEC against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020, led to a wave of delistings of the XRP token from various exchanges.
However, Judge Torres’ subsequent ruling prompted some of these exchanges to consider relisting the token in light of the evolving legal situation.
Brad Garlinghouse expressed disappointment with the need for legal action to rectify what he perceives as the SEC’s flawed understanding of facts and regulations within the U.S. cryptocurrency community.
Throughout 2023, the SEC has been actively pursuing various cryptocurrency entities for alleged securities violations, including prominent platforms like Binance and Coinbase.
In a recent victory for the cryptocurrency industry, asset management firm Grayscale achieved success in court against the SEC.
An appeal prompted the court to mandate a review of Grayscale’s application for a Bitcoin exchange-traded fund (ETF).
As the legal proceedings between the SEC and Ripple continue, Judge Torres has proposed a jury trial slated to commence in the second quarter of 2024.
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