Ripple Labs has submitted its formal objection to the motion presented by the United States Securities and Exchange Commission (SEC) that seeks certification from District Judge Analisa Torres for an interlocutory appeal concerning her prior ruling on XRP. Ripple contends that the prerequisites for such an appeal, which hinge on “exceptional circumstances,” are not present.
Ripple Advocates for Rejection of SEC’s Application
This past Friday, Ripple Labs tendered its counter-argument to the SEC’s application for certifying an interlocutory appeal. The SEC aims to overturn Judge Analisa Torres’ decision related to the systemic offers and sales of XRP through cryptocurrency trading platforms, as well as Ripple’s other modes of distribution. Concurrently, the SEC is advocating for a pause in the ongoing district court proceedings.
Ripple’s Legal Position
In the documentation submitted on Friday, Ripple posited that there are no “exceptional circumstances” that warrant the court’s approval of the SEC’s motion for interlocutory appeal. The legal representatives of the cryptocurrency company first disputed the SEC’s claim that the summary judgment by the court raises a “controlling question of law” suitable for such an appeal. They further contended that what the SEC describes as a “substantial ground for disagreement” is, in fact, mere discontent with how the court has applied the Howey Test to the majority of Ripple’s XRP transactions.
Moreover, Ripple’s counsel highlighted that the SEC itself admitted that protracted litigation would be inevitable, irrespective of the outcome of the proposed interlocutory appeal. This, they emphasized, indicates that the certification would not expedite the conclusion of this legal dispute.
SEC’s Recent Legal Setback
In a related development this week, the SEC experienced another judicial defeat against a cryptocurrency enterprise. The United States Court of Appeals for the District of Columbia Circuit found in favor of Grayscale Investments, ruling against the securities regulator on the matter of Grayscale’s planned conversion of a Bitcoin exchange-traded fund (ETF).
Do you believe that Judge Analisa Torres will grant the SEC’s request for an interlocutory appeal in the ongoing Ripple-XRP litigation? We invite your insights in the comments section below.