On September 1, Ripple, the renowned blockchain-based payment protocol, took a firm stance in the U.S. District Court for the Southern District of New York. They argued that the U.S. Securities and Exchange Commission (SEC) hasn’t sufficiently justified its appeal request.
SEC’s Grounds for Appeal Questioned
Ripple’s primary contention revolved around the SEC’s discontent with a previous ruling. This verdict declared that Ripple’s native token, XRP, wasn’t classified as a security for sales to everyday investors. Ripple highlighted the absence of “exceptional circumstances,” quintessential for interlocutory appeal. They urged the court to dismiss any appeal or stay plea from the SEC.
Ripple emphasized that the SEC needed to establish a base for a stay. This point was notably underscored after individual defendants pointed out this oversight. In solidarity with this, Ripple added, “The Individual Defendants write separately to oppose the SEC’s request. Ripple joins that opposition.”
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! Earlier in August, the SEC had chosen to contest a pivotal July ruling. Judge Analisa Torres ascertained that XRP predominantly didn’t fall under the security category, as per SEC norms. The SEC, however, contended that there was a tangible disparity of views concerning the laws in question.
Ripple’s Rocky XRP Journey
December 2020 marked a tumultuous period for Ripple. The SEC lodged a lawsuit against the firm, Brad Garlinghouse, its CEO, and co-founder Chris Larsen. This action led multiple exchanges to distance themselves from the XRP token, apprehensive of potential legal complications. Yet, following Judge Torres’ verdict, there was a silver lining. Several firms hinted at their willingness to reintroduce the XRP token or at least, weigh the possibilities.
In a forthright online post dated August 29, Garlinghouse expressed his disappointment. He lamented, “It’s tragic that the U.S. crypto community often leans on legal measures, highlighting an erratic SEC.”
SEC’s Expanding Radar
2023 witnessed the SEC amplifying its scrutiny over crypto entities. Notable names like Binance and Coinbase were under the SEC’s microscope, facing allegations of securities transgressions. However, August 29 was a watershed moment. The asset management giant Grayscale celebrated a legal win against the SEC. This triumph mandated a revisitation of its proposal for a spot Bitcoin ETF.
While the tussle between Ripple and the SEC remains unresolved, there’s anticipation in the air. Torres has hinted at a jury trial, with deliberations potentially commencing in the second quarter of 2024. A lot can happen between now and then, though.
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