Ripple Challenges SEC’s Request for Quick Appeal in XRP Case
In the ongoing legal battle between blockchain company Ripple and the U.S. Securities and Exchange Commission (SEC), Ripple has taken a significant step by filing a motion to block the SEC’s request for an immediate appeal following a recent court ruling that favored the cryptocurrency firm.
The ruling in question, issued in July, was a pivotal moment in the case. The court determined that Ripple’s automated open market sales of its cryptocurrency XRP did not meet the criteria for securities sales, as they failed to satisfy all four prongs of the Howey Test. The Howey Test is the legal standard used to assess whether an asset should be classified as a security.
Ripple’s legal team has now pushed back against the SEC’s attempt to secure certification for an interlocutory appeal, arguing that it does not meet the exceptional requirements necessary for approval.
To obtain approval for an interlocutory appeal, the SEC must demonstrate that a different judge would likely disagree with the ruling or that the appeal would expedite the case’s conclusion. However, Ripple’s legal counsel contends that the SEC has failed to meet these requirements.
In their filing, Ripple’s lawyers assert that “the Court’s summary judgment order does not present a controlling question of law suitable for interlocutory appeal.” They argue that the supposed substantial ground for disagreement is merely the SEC’s dissatisfaction with the court’s application of the Howey test to most of Ripple’s XRP transactions.
Furthermore, Ripple’s legal team has emphasized that the SEC itself has acknowledged the need for “protracted litigation” in this case, regardless of the outcome of its appeal. They argue that granting the SEC’s certification request would not expedite the proceedings.
The motion to deny the SEC’s certification request marks another chapter in the ongoing legal saga between Ripple and the SEC. The case has garnered significant attention in the cryptocurrency and blockchain industry, as it has the potential to set important precedents for how digital assets are regulated in the United States.
The court’s decision on Ripple’s motion will be closely watched by both the cryptocurrency community and legal experts, as it could have far-reaching implications for the regulatory landscape of the digital asset space. For now, the legal battle between Ripple and the SEC continues to be a focal point in the evolving regulatory environment surrounding cryptocurrencies.
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