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Ripple Labs has expressed its disagreement with the United States securities regulator’s intention to file an interlocutory appeal concerning the summary judgment issued by U.S. District Court Judge Analisa Torres on July 13.
In a letter dated August 16 to Torres of the Southern District of New York, Ripple’s attorneys articulated that the Securities and Exchange Commission did not meet the criteria of the Howey test regarding Ripple’s distribution of XRP — a “legal question” — and therefore, the court should deny the SEC’s request for permission to file an interlocutory appeal.
An interlocutory appeal is initiated when a trial court’s decision is contested while other elements of the case are still ongoing and is permitted only under certain conditions.
Ripple’s legal team contends that it would be more suitable for the SEC to challenge the court’s decision following a final judgment with a complete record.
Ripple Labs formally contests the SEC’s attempt to file an appeal in a letter to U.S. Judge Analisa Torres. Source: Court Listener
Ripple’s attorneys presented three primary arguments in their opposition to the SEC’s request. They initially asserted that an appeal necessitates a straightforward legal question and that the SEC’s request does not introduce any new legal matters that require examination.
Secondly, the attorneys argue that the SEC’s claim that the court made an incorrect ruling is inadequate, as the SEC must demonstrate that two courts are in clear disagreement on the relevant issues, which is not applicable in this situation.
Lastly, Ripple’s legal representatives contended that an immediate appeal would not facilitate the resolution of the ongoing litigation.
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NEW: @Ripple files its response to the @SECGov’s anticipated interlocutory appeal.
The company, @bgarlinghouse and @chrislarsensf oppose the appeal on the following grounds:
1. The Court’s Order Does Not Involve a Controlling Question of Law.
2 The SEC Cannot Show a…— Eleanor Terrett (@EleanorTerrett) August 16, 2023
Stuart Alderoty, Ripple’s chief legal officer, clarified that no “extraordinary circumstance” exists in this case that would justify the court deviating from standard legal procedures:
“There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”
We oppose the SEC’s request for an interlocutory appeal. There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal. https://t.co/hjNIwEZkSt
— Stuart Alderoty (@s_alderoty) August 16, 2023
Related: SEC v. Ripple: Judge greenlights investment banker declarant’s entry
On July 13, Ripple achieved a partial victory over the securities regulator regarding the classification of XRP as a security.
Judge Torres determined that the XRP token itself is not classified as a security. However, she noted that sales of XRP tokens could be considered securities under specific conditions, such as when sold to institutional investors, but not when sold on exchanges to retail traders.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
