Ripple Files Motion to Challenge SEC's Appeal on Landmark XRP Decision
Ripple opposes SEC's bid for rapid appeal certification in recent lawsuit ruling against the regulator.
Last month, the U.S. Securities and Exchange Commission (SEC) requested Judge Analisa Torres to approve an appeals court to review her ruling in favor of Ripple. The ruling states that Ripple's automated, open-market sales of XRP are not securities. The lawyers for Ripple argue that the regulator’s certification request for an interlocutory appeal does not meet the exceptional requirements needed to warrant approval. They claim that the Court’s summary judgment order does not present a controlling question of law suitable for interlocutory appeal. Furthermore, they argue that 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. Additionally, the SEC concedes that protracted litigation is necessary regardless of whether its requested interlocutory appeal succeeds.
In response to the SEC's arguments, Ripple CEO Brad Garlinghouse stated that the court’s July ruling, which counters the agency’s claim that virtually all crypto assets count as securities, was a win for Ripple on all fronts. In a bid to prevent the potential reversal of this groundbreaking ruling, Ripple is asking the court not to grant the SEC’s request. It is important to note that this case has significant implications for the cryptocurrency industry. If the SEC’s appeal is granted, it could have far-reaching effects on the classification of cryptocurrencies as securities and could potentially stifle innovation in the space.
Sep 04, 2023