In the ongoing legal tussle between Ripple and the United States Securities Exchange Commission (SEC), Ripple has taken a decisive stance by countering the SEC’s motion for an interlocutory appeal of Judge Torres’s July 13 ruling.
Ripple’s response, presented in a letter dated August 16, 2023, urged the court to dismiss the SEC’s motion, asserting that the regulator has failed to provide substantial evidence for its case based on the Howey test.
The basis of Ripple’s argument revolves around three key points:
- Ripple disputed the validity of the SEC’s appeal, as it doesn’t pertain to a controlling issue of law.
- Ripple questioned the SEC’s inability to demonstrate substantial reasons for challenging the court’s prior ruling.
- Ripple argued that the immediate appeal sought by the SEC would not contribute to the quick resolution of the ongoing litigation.
The US SEC submitted a letter requesting an interlocutory appeal on August 10, 2023. In its letter, the regulator rebuts portions of Judge Torres’s ruling that deemed programmatic sales of Ripple’s XRP to retail buyers through public crypto asset exchanges as not falling under securities classification. The SEC argued that this ruling fails to align with the principles of the Howey Test and could create complications in enforcing securities regulations.
It’s important to note that an interlocutory appeal involves challenging a court ruling while the case is still ongoing. Despite Judge Torres’s summary judgment in July, the Ripple vs. SEC lawsuit still has pending issues- the SEC’s case against Brad Garlinghouse and Chris Larsen.
Attorney James K. Filan shared this development with the XRP community, highlighting that CEO Brad Garlinghouse and co-founder Chris Larsen jointly filed Ripple’s opposition.
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) August 16, 2023
If the proceedings move ahead in line with the SEC’s proposed schedule, the regulator will submit the opening brief for its motion on August 18, 2023.
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