The U.S. Securities and Exchange Commission (SEC) has responded to Ripple’s filing in their ongoing legal battle, stating that their case against the cryptocurrency company remains strong. The SEC is doubling down on their appeal bid, maintaining that Ripple’s XRP token should be considered a security and subject to regulation. This latest development reveals the SEC’s determination to continue pursuing its case against Ripple.
**Title 1: SEC Pushes Back Against Ripple Labs’ Attempt to Block Appeal**
The Securities and Exchange Commission (SEC) has responded to Ripple Labs’ efforts to prevent its appeal of a judge’s ruling favorable to the cryptocurrency company. The SEC argued that U.S. District Judge Analisa Torres’ summary judgment, issued in July, raised complex legal issues that warrant review by a federal appeals court. The regulator is seeking to challenge Torres’ findings that Ripple’s sales of the digital token XRP were not securities offerings requiring registration with the SEC. According to the judge, only certain institutional sales made by Ripple under investment contracts qualify as unregistered securities trades.
**Title 2: SEC Counters Ripple Labs’ Arguments for an Interlocutory Appeal**
In its latest court filing, the SEC has submitted a strong rebuttal to Ripple Labs’ position on the possibility of an interlocutory appeal. Ripple has argued that the issues raised by the SEC are fact-specific and unsuitable for provisional review, and that an immediate appeal would not expedite the case’s resolution. However, the SEC has contended that appeals courts can review district judges’ applications of legal tests, including those used to determine the status of a security. The regulator maintained that an interlocutory appeal would be the most efficient path towards resolving the case.
The SEC’s filing emphasized that its proposed appeal would hasten the conclusion of the case, contrary to Ripple’s preference for further pretrial litigation in district court before any appeal. Ripple, on the other hand, called for the denial of the SEC’s request, claiming that the conditions necessary for an interlocutory appeal were not met. Ripple argued that the SEC failed to establish any difference of opinion about an underlying legal rule that would warrant certification.
The SEC initially filed a lawsuit against Ripple and two of its executives in December 2020, alleging that they raised over $1.3 billion by selling XRP as an unregistered security. The case has reached the summary judgment stage following the completion of discovery. Both sides moved for summary judgment this year.
In conclusion, the SEC has responded to Ripple Labs’ bid to block its appeal of a judge’s ruling. The regulator is seeking to challenge the court’s determination that Ripple’s sales of XRP were not securities offerings requiring registration. The SEC argued that the issues at hand necessitate an interlocutory appeal and that its proposed appeal would expedite the conclusion of the case. Ripple, however, remained unconvinced and called for the denial of the SEC’s request for certification. The case continues to unfold, with significant implications for the cryptocurrency industry.