Ripple has decided to oppose the U.S. Securities and Exchange Commission’s (SEC) request for an interlocutory appeal in the ongoing $XRP lawsuit case. This comes after the court’s recent landmark ruling that went against the regulator.
The SEC had wanted to appeal the ruling which said that the blockchain payments firm did not break securities laws in making $XRP tokens available to retail traders by putting it on exchanges. Ripple’s recent move is motivated by the argument that the regulatory watchdog has not satisfied the requirements to file an appeal.
The court filing by Ripple asserts that there should be exceptional requirements to warrant the approval of the SEC’s certification request for this interlocutory appeal. However, these were not present in the case-
“First, the Court’s summary judgement order does not present a controlling question of law suitable for interlocutory appeal. Second, the supposed substantial ground for disagreement is merely the SEC’s dissatisfaction with the Court’s application of Howey to most of [the] Defendants’ transactions in XRP. And, third, the SEC concedes that protracted litigation is necessary regardless of whether its requested interlocutory appeal succeeds – meaning certification has no chance of hastening the end of this litigation.”
Ripple’s lawyers argued that the reason why SEC is appealing primarily rested on “dissatisfaction” with the judge’s decision that $XRP is not necessarily a security on its face. They have now urged the judge to reject any of the regulatory watchdog’s requests to make an appeal or stay-
“The SEC has not even attempted to meet the standard for a stay, even after the Individual Defendants identified that omission in their pre-motion letter. The Individual Defendants write separately to oppose the SEC’s request. Ripple joins that opposition.”
When Judge Analisa Torres granted a partial summary judgement in favour of Ripple Labs regarding $XRP’s status as a security, it was heralded as a ‘watershed moment’. The community believed that this ruling would make it difficult for the SEC to claim authority over cryptocurrencies.
Back then, Ripple CEO Brad Garlinghouse said that the SEC failed on everything that matters after the judge’s groundbreaking ruling in favour of the company.
However, many in the industry also were of the belief that it would now lead to more confusion. Commentators then called for Congress to take action and give legal clarity to crypto in light of the recent ruling.
The U.S-based technological company has been embroiled in this lawsuit since December 2020. Its latest move is an attempt to prevent the potential reversal of this so-called groundbreaking ruling.
Meanwhile, $XRP holders’ attorney, John E. Deaton, is convinced that the SEC’s request will not be granted. Back in August, he had also claimed that the regulator’s lawsuit against Ripple has cost the $XRP token almost three years of adoption in the U.S.
The pro-Ripple lawyer pointed to how much crypto exchanges like Coinbase used to promote $XRP before the lawsuit. Deaton believes that if it had not been for SEC’s ambush on Ripple, Coinbase and other crypto exchanges might have shown more interest in the $XRP asset, placing it on a trajectory to greater adoption.
$XRP was seen trading in the red on its charts at the time of writing. It is down by over 2% weekly, changing hands for $0.503.