Ripple has responded to the SEC’s request for an appeal of the XRP case, arguing that there are no exceptional circumstances to justify an early appeal. The dispute between Ripple and the SEC continues, with high stakes for the cryptocurrency industry.
The legal battle between Ripple and the Securities and Exchange Commission (SEC) has taken another twist. Ripple has decided to stand firm against the SEC’s request for an appeal in the XRP case.
In a letter to the court, Ripple Labs, along with its executives Bradley Garlinghouse and Christian Larsen, have made clear their opposition to the SEC’s request to challenge the recent court ruling on the status of XRP.
A few weeks ago, Judge Analisa Torres ruled that XRP should not be considered a security when sold to the general public on an exchange platform. The ruling sent shockwaves through the industry, marking one of the SEC’s first significant setbacks in the cryptocurrency arena. The judge had emphasized that only institutional sales conferred the token with the status of a financial security, leading to a recovery in the XRP price.
Ripple, a victory not yet definitive?
The verdict had even prompted cryptocurrency exchange giants such as Coinbase and Kraken to quickly re-list XRP on their respective platforms, marking an apparent victory for Ripple.
However, the SEC did not throw in the towel and decided to file an appeal, arguing that the decision had significant implications for the enforcement of securities laws. This appeal quickly attracted the attention and opposition of Ripple.
Stuart Alderoty, Ripple’s General Counsel, said in a tweet,
“We oppose the SEC’s request for interlocutory appeal. There are no extraordinary circumstances here that would justify departing from the rule requiring that all issues involving all parties be resolved prior to an appeal.”
This legal battle is now taking place in a complex arena where the stakes are high not only for Ripple’s future, but for the cryptocurrency industry as a whole. The SEC will need the approval of the U.S. District Court for the Southern District of New York as well as the U.S. Court of Appeals to pursue its appeal and challenge Judge Torres’ ruling.
Ripple has yet to win a definitive victory in this case, which has been ongoing since 2020, and future developments will continue to capture the attention of the cryptocurrency community and legal observers. The next stage of this dispute could have lasting consequences for cryptocurrency regulation in the US and how tokens are perceived in traditional financial markets.