- Ripple’s lawyers challenge the SEC’s reasons for requesting an appeal.
- A prior judge’s decision claimed XRP did not fit the “security” definition.
- CEO Brad Garlinghouse criticizes the SEC’s aggressive approach in the crypto space.
In a recent courtroom twist, Ripple’s lawyers contended that the U.S. Securities and Exchange Commission (SEC) lacks compelling reasons to call for an appeal. Their filing in the U.S. District Court for the Southern District of New York posited that the SEC’s move mainly hinges on its discontent with a previous judge’s ruling. This ruling emphasized that XRP, Ripple’s flagship token, wasn’t predominantly a security for sales directed at retail investors.
Ripple’s counsel underscored the absence of “exceptional circumstances” that would justify the appeal. They further urged the presiding judge to rebuff any prospective appeal or associated stay. This resistance follows the SEC’s August attempt to overturn a July resolution, wherein Judge Analisa Torres had clarified XRP’s predominant non-security stature under SEC regulations.
Last December’s SEC lawsuit against Ripple, and its key players, CEO Brad Garlinghouse and co-founder Chris Larsen, spurred many crypto exchanges to drop XRP from their listings. Fortunately, the tides seemed to shift post-Torres’ verdict, with several firms considering reinstating the token.
In a candid remark, Garlinghouse voiced his discontent about the U.S. crypto community’s forced legal pursuits, highlighting the SEC’s misjudged and overly aggressive stance. With the lawsuit persisting, a jury trial for the case has been proposed for mid-2024.
For the future, Ripple’s legal encounters, such as the XRP SEC skirmish, signal a more transparent and stable crypto regulatory space, underlining the industry’s resilience and pursuit of clarity.
