The ongoing legal battle between the SEC and Ripple, which has garnered significant attention from the cryptocurrency community, has entered a new phase as Ripple Labs files an opposition motion against the U.S. Securities and Exchange Commission (SEC).
Ripple filed the appeal in response to a July 13 court ruling by Judge Analisa Torres, who determined that Ripple did not commit any wrongdoing by selling its tokens.
Ripple is a blockchain technology company that focuses on enabling fast, secure, and low-cost cross-border transactions through its digital payment protocol and cryptocurrency, XRP.
Founded in 2012 by Chris Larsen and Jed McCaleb, Ripple aims to revolutionize the traditional financial system by providing solutions for real-time, global settlement of payments.
The U.S. Securities and Exchange Commission (SEC) is a federal regulatory agency responsible for overseeing and enforcing securities laws in the United States.
The SEC, which was established in 1934 in response to the stock market crash of 1929, aims to protect investors, maintain fair and efficient markets, and facilitate capital formation.
Ripple Labs, through its legal representatives, challenged the SEC’s case, emphasizing that the commission failed to provide substantial evidence under the Howey test.
The company’s lawyers asked the court to say no to the SEC’s request to pause and file an appeal in the middle of the case. They said it’s better to wait for the final decision before appealing, instead of trying to appeal because they only partially lost.
Counsel to Ripple stated three key arguments to support their stand in the filing. Firstly, they noted that an appeal should hinge on a purely legal question, which the SEC’s motion does not raise. Secondly, the lawyers dismissed the SEC’s assertion that the court erred in its ruling, deeming it insufficient.
Lastly, the defense contended that granting an immediate appeal would not accelerate the resolution of the ongoing litigation.
Furthermore, Ripple Labs pointed out concerns about the selective or biased enforcement of regulations, suggesting that the commission’s approach might be driven more by convenience than conviction.
Stuart Alderoty, Ripple’s Chief Legal Officer, strongly opposed the SEC’s appeal request, underscoring the lack of exceptional circumstances warranting such an appeal..
