Following Judge Torres’ ruling in favor of Ripple lately, the SEC has expressed its intention to file an appeal. The crypto firm responded to the SEC’s decision by sending a letter of objection to the judge handling the case. Noting the absence of extraordinary circumstance, Ripple’s attorneys deem the SEC’s appeal request inappropriate. This situation shows the determination of both parties to win the battle.
Absence of extraordinary circumstance justifying the request of the SEC
On August 16, Ripple Labs sent a letter of objection to Judge Analisa Torres of the Southern District of New York. The company’s lawyers explain that the SEC did not satisfy the elements of the Howey test relating to the distribution of XRP by Ripple. As a reminder, the judge granted summary judgment. Then, this judgment was challenged by the SEC through an interlocutory appeal. The latter occurs when a first instance decision is appealed while other aspects of the case are still pending.
Indeed, interlocutory appeal is only permitted in specific circumstances. Stuart Alderoty, Chief Legal Officer of Ripple noted the lack of “extraordinary circumstancewhich substantiate the SEC’s request for appeal. In the letterRipple’s lawyers thus believe it is more appropriate for the SEC to appeal the court’s decision after a final judgment and a complete file.
Ripple vs. SEC case continues
Ripple Labs lawyers have advanced three main arguments in opposition to the SEC’s request. First, an appeal requires a pure question of law while the SEC’s request does not raise new legal issues. Second, his argument that the court ruled incorrectly is insufficient. Indeed, the regulator must demonstrate that two tribunals are in manifest conflict with each other on the issues in question, which is not the case here.
The final argument advanced by Ripple is that an immediate appeal would not advance the dismissal process. Thus, the case between Ripple and the SEC, which has been going on for a few years, is far from over. To be continued…
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
