The SEC’s “dissatisfaction” with a July court ruling finding that the XRP coin did not generally qualify as a security was cited as the basis for an appeal, according to legal representation.
Attorneys for Ripple have said the SEC hasn’t satisfied the criteria for appealing a ruling in the company’s case against the agency.
Ripple’s legal team claimed in a September 1 filing with the U.S. District Court for the Southern District of New York that the SEC’s “dissatisfaction” with the judge’s ruling that the XRP coin did not qualify as a security for sales to retail investors was the primary basis for the appeal. The attorneys argued that there were no “exceptional circumstances required for interlocutory appeal” and asked the court to reject any appeal or stay.
Even while the Individual Defendants pointed out the SEC’s failure to comply with the requirement for a stay in their pre-motion letter, Ripple claims the SEC has made no effort to do so. The Individual Defendants are responding to the SEC’s request in a separate letter. For that cause, Ripple has switched sides.
Judge Analisa Torres’s July ruling that XRP was not a security under SEC standards was appealed and stayed by the commission in August. The SEC stated that “substantial ground for differences of opinion” existed over the applicable legislation at the time.
In an X postdated August 29th, Garlinghouse expressed his disappointment that so many members of the US crypto community had to go to court to demonstrate that the SEC was “out of control” and “consistently wrong on the facts and the law.”
In 2023, the SEC has gone after many cryptocurrency exchanges and wallet providers including Binance and Coinbase for claimed violations of securities laws. The asset management firm Grayscale won an appeal on August 29 that required the SEC to reconsider its application for a spot Bitcoin ETF.
The SEC’s action against Ripple is still active in civil court. During the second quarter of 2024, Torres has suggested a jury trial.
Also Read: A Bloomberg Analyst Claims The SEC’s Main Page Is Missing The BlackRock Bitcoin ETF Delay Document
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