Attorneys representing Ripple in its lawsuit with america Securities and Change Fee (SEC) have instructed the regulator hasn’t met the necessities to request an enchantment.
In a Sept. 1 submitting with U.S. District Court docket for the Southern District of New York, Ripple’s authorized crew said the SEC’s grounds for an enchantment largely rested on “dissatisfaction” with a choose’s determination that the XRP token did not qualify as a safety for gross sales to retail traders. The attorneys stated “distinctive circumstances required for interlocutory enchantment” have been absent within the case, and referred to as on the choose to each deny any request for an enchantment or keep.
“The SEC has not even tried to fulfill the usual for a keep, even after the Particular person Defendants recognized that omission of their pre-motion letter,” stated Ripple. “The Particular person Defendants write individually to oppose the SEC’s request. Ripple joins that opposition.”
In August, the fee moved to appeal and keep a July courtroom determination wherein Choose Analisa Torres dominated XRP largely was not a safety underneath SEC tips. On the time, the SEC argued there was “substantial floor for variations of opinion” on the legal guidelines at challenge.
The SEC filed its lawsuit in opposition to Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen in December 2020, prompting many exchanges to delist the XRP token to keep away from doable authorized entanglement. Following the Torres’ ruling, lots of the identical corporations stated they’d relist the token or discover doing so sooner or later.
“It’s unhappy that so many within the US crypto group need to resort to the authorized course of to show this SEC is uncontrolled and persistently unsuitable on the info and the legislation,” said Garlinghouse in an Aug. 29 X submit.
The SEC has focused various crypto corporations in 2023 over allegations of securities violations, together with Binance and Coinbase. On Aug. 29, asset supervisor Grayscale achieved a courtroom victory in opposition to the SEC following an appeal ordering a overview of its software for a spot Bitcoin (BTC) exchange-traded fund.
The civil lawsuit between the SEC and Ripple is ongoing. Torres proposed a jury trial for the case beginning within the second quarter of 2024.