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Ripple Retort: Legal Team Opposes SEC Request for Ruling Appeal

2 mins
Updated by Kyle Baird
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In Brief

  • Ripple Labs' legal team opposes SEC's review request of a July ruling, stating no "extraordinary circumstance" exists.
  • The SEC's appeal request could potentially affect multiple other pending court cases depending on the outcomes.
  • Ripple CEO Brad Garlinghouse insists that the appeal request doesn't change the fact that XRP is not a security.
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Ripple Labs has responded to the Security and Exchange Commission’s filing of an interlocutory review of the court ruling in July. The legal team claims that no “extraordinary circumstance” exists to warrant an appeal. 

On Aug. 16, Ripple lawyers sent a letter to US District Court Judge Analisa Torres opposing the regulator’s attempts to appeal her ruling. 

Ripple Refutes SEC Review 

Ripple chief legal officer Stuart Alderoty said

“There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”

An interlocutory appeal occurs when a ruling by a trial court is appealed while other aspects of the case are still proceeding. Moreover, they are only permitted under specific circumstances, which are laid down by federal and state courts.

On Aug. 9, the SEC sent a letter to Judge Torres claiming an “Interlocutory review is warranted here.”

It requested the judge put the case on hold during the appeal. The reasons it gave were that multiple other pending court cases that could be affected depending on the appeal’s outcome.

On July 13, the court ruled that XRP was not a security when sold to the public on an exchange but was a security contract when sold to institutional investors.

To learn more about the SEC v Ripple case, read BeInCrypto’s guide: Everything You Need To Know About SEC vs Ripple

Ripple Heads Fire Back 

On Aug. 17, Ripple CEO Brad Garlighouse said the request for appeal (even if granted) doesn’t change the fact that XRP is not a security

“That’s not up for debate/trial. But the SEC continues to claim that Chris [Ripple co-founder Chris Larsen] and I acted recklessly in believing that XRP is not a security. That’s utter nonsense.”

“We look forward to proving the SEC wrong as a matter of fact and law (again),” he added. 

The SEC also named Garlinghouse and Larsen in the lawsuit against Ripple.

Coinbase chief legal officer Paul Grewal said the move was “powerful.” “Especially in highlighting the hypocrisy of claiming a controlling issue of law, when they told the Court precisely the opposite, repeatedly,” he added. 

The cross-border payments token has taken a 2.7% hit on the day, in line with the broader crypto market retreat. As a result, XRP had fallen to $0.59 at the time of writing, having lost 30% since the partial court victory in mid-July. 

XRP/USD 1 day. Source: BeInCrypto
XRP/USD 1 day. Source: BeInCrypto

Furthermore, XRP has lost 20% over the past month and remains down 82.6% from its January 2018 peak of $3.40.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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