Ripple Labs, engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), has responded to the SEC’s move to file an interlocutory appeal following a partial loss in the case. The Chief Legal Officer of the company asserts that there are no extraordinary circumstances to warrant the appeal while the case is still pending. This development comes after their legal victory in July when a U.S. District Court Judge ruled that XRP was not a security.
Ripple Counters SEC’s Interlocutory Appeal Request
In an official letter dated August 16 addressed to Judge Analisa Torres of the Southern District of New York, Ripple’s legal team expressed their opposition to the SEC’s request for an interlocutory appeal. This appeal would involve challenging the summary judgment issued by Judge Torres on July 13 regarding XRP’s securities status. Their attorneys argued that since the SEC failed to satisfy certain aspects of the Howey test concerning the distribution of XRP, a legal question arises. As such, they urged the court to reject the SEC’s motion for an interlocutory appeal.
The legal term “interlocutory appeal” refers to appealing a trial court’s decision while other aspects of the case are ongoing. Their legal team contends that it would be more appropriate for the SEC to appeal the ruling after a final judgment is rendered with a complete record. They presented three key arguments against the SEC’s request.
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Ripple’s Three Key Arguments
Firstly, Ripple’s legal team stated that for an appeal to be considered, it must address a pure question of law. They maintained that the SEC’s appeal does not raise new legal issues warranting review.
Secondly, the attorneys asserted that the SEC’s claim of an incorrect court ruling is insufficient. They highlighted that the SEC should demonstrate a clear conflict between two courts over specific issues, a condition not met in this case.
Lastly, Ripple’s lawyers argued that an immediate appeal would not accelerate the termination of the litigation proceedings.
Ripple’s Chief Legal Officer’s Stance
Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized that no extraordinary circumstances exist to justify deviating from standard legal procedure. He stated that all issues involving all parties should be resolved before pursuing an appeal.
Ripple’s response to the SEC’s interlocutory appeal request underscores the ongoing legal complexities of its case. As the legal battle continues, they remain firm in its position, asserting that the SEC’s request lacks the necessary grounds for an appeal at this stage. This legal back-and-forth comes after Ripple’s recent partial legal victory, where XRP’s classification as a security was clarified by Judge Torres, a decision that has implications for the broader cryptocurrency industry.