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Ripple Takes a Stand: An Exclusive Response to the SEC’s Interlocutory Appeal

Ripple Takes a Stand: An Exclusive Response to the SEC's Interlocutory Appeal

Ripple Strikes Back Against SEC's Appeal with Strong Opposition


Ripple Labs has filed its reply opposing the Securities and Exchange Commission's (SEC) interlocutory appeal against Judge Torres' ruling in favor of the firm. Ripple argues that the SEC does not have the right to an appeal as the “exceptional circumstances” required for it are absent. The company also questions whether an immediate appeal would speed up the case and emphasizes that the SEC intends to continue its lawsuit regardless of the appeal's outcome.

Ripple Challenges the SEC's Right to Appeal

Ripple, in its court filing on September 1, stated that the SEC lacks the grounds for an appeal. The company contests the SEC's argument that an appeal is necessary because it involves controlling questions of law that could impact other cases. According to Ripple, the summary judgment does not present a controlling question of law that warrants an appeal. The company argues that the appellate court would need to study the record, just as Judge Torres did, before making a decision. Ripple insists that a pure question of law should be one that the court can quickly review and decide without extensive examination.

Not Meeting the Standard for a Stay

The SEC requested a stay on Judge Torres' ruling pending the determination of the appeal, but Ripple opposes this. Ripple asserts that the SEC has not met the standard for a stay and therefore the court should deny the request. The company emphasizes that the SEC's intention to continue the lawsuit against Ripple, even if the appeal succeeds, demonstrates that granting a stay would not expedite the case.

The Focus of the Appeal

If the court approves the SEC's interlocutory appeal, the primary focus will be on Judge Torres' ruling that Ripple's programmatic sales and other distributions did not constitute an investment contract. This ruling holds significant implications for the entire crypto industry moving forward. If the SEC obtains a ruling in its favor, it would provide momentum to its case against Coinbase and Binance, where it alleges that both exchanges offered securities. However, experts believe that the SEC may once again lose upon appeal, as the court will rely on the evidence presented in the lower court and may conclude that the SEC failed to provide sufficient proof to support its arguments.

Closing Summary

Ripple has swiftly responded to the SEC's appeal by filing its opposition, challenging the SEC's right to appeal and contesting the necessity of an immediate appeal. Ripple also rejects the SEC's request for a stay, highlighting that the SEC intends to continue the lawsuit regardless. The focus of the appeal, if granted, will center around Judge Torres' ruling on Ripple's programmatic sales. Experts speculate that the SEC may lose again upon appeal due to insufficient evidence. The outcome of this case will have significant implications for the crypto industry and the SEC's cases against Coinbase and Binance.

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