Ripple Labs has expressed its objection to the U.S. securities regulator’s interlocutory appeal of the summary judgment issued by U.S. District Judge Analisa Torres on July 13.
on August 16 letter Ripple’s attorneys explained to Torres of the Southern District of New York that since the SEC failed to satisfy elements of the Howey test related to Ripple’s distribution of XRP (a “matter of law”), the court should deny the SEC’s motion to license the interim appeal.
An interlocutory appeal occurs when an appeal is made against a decision of a trial court while other aspects of the case are still pending and are only permitted under specific circumstances.
Ripple’s lawyers believe that it is more appropriate for the SEC to appeal the court’s decision after a fully documented final judgment.
Ripple’s lawyers made three main arguments against the SEC’s request. They first argued that appeals require purely legal questions and that the SEC’s request does not raise new legal questions that require review.
Second, the attorneys claim that the SEC’s argument that the court erroneously ruled on the matter is not sufficient because the SEC would have to show that the two courts were clearly in conflict on the subject matter, which was not the case in this case. in this way.
Third, Ripple’s lawyers argued that an immediate appeal would not advance the termination proceedings.
1. The order of the court does not involve control of the law.
2 SEC cannot show…
— EleanorTerrett (@EleanorTerrett) August 16, 2023
Ripple Chief Legal Officer Stuart Alderoty explained There were no “exceptional circumstances” in the case that allowed the court to deviate from the normal legal process:
“There is nothing exceptional here that would justify a departure from the rule requiring all parties to be resolved prior to appeal.”
We object to the SEC’s interlocutory appeal request. There is nothing special here to justify a departure from the rule requiring all issues of all parties to be resolved before appeal. https://t.co/hjNIwEZkSt
— Stuart Alderoty (@s_alderoty) August 16, 2023
related: SEC v Ripple: Judge Grants Investment Banker Declarant Entry
On July 13, Ripple scored a partial victory over XRP’s security status, defeating securities regulators.
Torres ruled that the XRP token itself is not a security. However, she said that in some cases, sales of XRP tokens can be securities, such as when sold to institutional investors, but not when sold on exchanges to retail traders.
Magazine: Crypto Regulation: Does SEC Chairman Gary Gensler Have the Final Word?