Ripple's legal representatives have responded to the United States Securities and Exchange Commission (SEC) regarding its appeal request in the XRP lawsuit. The lawyers argue that the SEC's grounds for an appeal are primarily rooted in dissatisfaction with a previous court decision that ruled XRP as not largely qualifying as a security. Ripple's legal team asserts that the exceptional circumstances needed for an interlocutory appeal are absent and calls on the judge to deny the appeal request or stay.
Ripple's Response to Appeal Request: Dissatisfaction and Lack of Exceptional Circumstances
Ripple's legal team filed () a response with the U.S. District Court for the Southern District of New York on September 1, opposing the SEC's appeal request. They argue that the basis for the SEC's appeal is primarily driven by its dissatisfaction with a judge's decision that XRP did not meet the criteria to be considered a security for sales to retail investors. Ripple's legal representatives contend that the requisite "exceptional circumstances" needed for an interlocutory appeal are absent in this case.
Denial of Appeal and Stay: Request for Action
Ripple's legal team urges the judge to both deny the SEC's request for an appeal and to reject any motion for a stay. The response highlights that the SEC has not met the standard for a stay, even after the Individual Defendants identified the omission in their pre-motion letter. Ripple joins the opposition to the SEC's appeal request.
Background and Implications: SEC's Appeal and Previous Ruling
The SEC moved to appeal and stay a July court decision in which Judge Analisa Torres ruled that XRP largely did not qualify as a security under the SEC's guidelines. The SEC's lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen was filed in December 2020, leading to delistings of the XRP token on several exchanges. Following the ruling, exchanges indicated their intentions to relist the token or explore relisting in the future.
Ongoing Legal Landscape: Ripple's Stand and Broader SEC Actions
Ripple's CEO, Brad Garlinghouse, expressed frustration with the SEC's actions, highlighting the legal process as a way to challenge the SEC's approach. The SEC has targeted various crypto firms in 2023 over alleged securities violations. A recent victory for asset manager Grayscale against the SEC led to an appeal that ordered a review of its application for a spot Bitcoin exchange-traded fund. The civil lawsuit between Ripple and the SEC continues, with a proposed jury trial slated for the second quarter of 2024.