Link copied Ripple Labs Opposes SEC's Attempt for Early Appeal Over Court Ruling
Ripple Labs has expressed its disapproval of the Securities and Exchange Commission's (SEC) effort to initiate an early appeal against a summary judgment made by U.S. District Court Judge Analisa Torres on July 13.
On August 16, Ripple's legal team submitted a letter to Judge Torres of the Southern District of New York. In the letter, they highlighted that the SEC's move was premature and lacked a strong foundation based on the Howey test's standards, which determines if a transaction is considered a security. According to Ripple’s legal representatives, this particular matter concerning the distribution of Ripple's XRP didn’t fit the criteria.
For context, an interlocutory appeal lets parties contest a court's decision even when other facets of the lawsuit are ongoing. However, these appeals are rare and have stringent conditions.
In their defense against the SEC's early appeal request, Ripple’s attorneys presented three pivotal arguments:
First, Ripple's attorneys emphasize that for an appeal to be valid, it should revolve around a clear legal question. In this case, the SEC's proposition introduces no fresh legal debates warranting examination.
Second, Ripple's legal team counters the SEC’s claim that the court's decision was flawed. They stress that for the SEC's point to hold water, evidence of two court's conflicting judgments on the same issue should be visible. Such discrepancies are not present here.
Third, they further maintain that granting an immediate appeal won't expedite the ongoing litigation process. Stuart Alderoty, Ripple’s top legal authority, commented that the current situation doesn't showcase any “extraordinary circumstance” which would prompt the court to stray from typical legal processes.
Interestingly, Ripple had previously experienced a minor win against the SEC on July 13. Judge Torres had then decreed that while the XRP token isn't a security in and of itself, there could be scenarios where XRP sales are viewed as securities. For instance, sales to big financial entities might be classified as securities, while sales to average customers on public exchanges might not.
