Ripple Labs reacts to the SEC's request for an appeal
August 17, 2023 8:06 AM
According to Ripple's chief legal officer, there are no "extraordinary circumstances" that would allow the Securities and Exchange Commission to appeal its partial loss while the case is still pending.
Ripple Labs has opposed the US Securities and Exchange Commission's decision to file→ an interlocutory appeal over the summary judgment issued by US District Court Judge Analisa Torres on July 13.
Ripple's attorneys wrote→ to Judge Torres from the Southern District of New York on August 16 to argue that the SEC's request for leave to file an interlocutory appeal should be denied because it raises a "legal question" because the SEC failed to satisfy the requirements of the Howey test regarding Ripple's distribution.
An interlocutory appeal happens when a trial court ruling is appealed while other portions of the case are still being heard, and it is only permitted in certain circumstances.
Ripple's legal team maintains that the SEC should challenge the court's decision only once a final judgment is issued and the whole record is available.
In a letter sent to U.S. Judge Analisa Torres, Ripple Labs expressly opposes
the SEC's decision to pursue an appeal. Origin: Court Listener.
In response to the SEC's request, Ripple's lawyers advanced three key points. They first said that an appeal must be based only on a point of law, and that the SEC's motion introduces no new legal questions that must be addressed.
Second, the lawyers argue that the SEC's position that the court erred in ruling on the topic is insufficient, because the SEC must prove that two courts are in plain conflict over relevant issues, which isn't the case here.
Third, Ripple's attorneys contended that an early appeal would not progress the termination lawsuit proceedings.
Ripple's chief legal officer, Stuart Alderoty, argued→ that no "extraordinary circumstance" exists in the case that requires the court to deviate from the standard legal procedure:
"There were no exceptional circumstances present that could justify deviating from the standard that demand all issues pertaining to all parties to be addressed prior to an appeal."
On July 13, Ripple won a partial victory in court against the securities regulator over whether or not XRP should be considered a security.
Torres declared that the XRP coin was not a security in and of itself. However, she stated that sales of XRP tokens can be considered securities in some instances, including as when sold to institutional investors, but not when sold to regular traders on exchanges.