Ripple Opposes The SEC's Appeal Request As Courtcase Rolls On

Ripple disagreed with the idea that there is a special reason to break the rule that says all issues must be resolved before an appeal. The U.S. Securities and Exchange Commission (SEC) asked for an interlocutory appeal against Judge Analisa Torres’ decision on the sale of XRP being considered securities, and Ripple Labs opposed this request.

In a recent tweet, Stuart Alderoty, chief legal officer of Ripple Labs, argued that the court should deny the SEC's request. He believes that there is no valid reason to deviate from the rule that mandates resolving all issues prior to an appeal.

Ripple To Challenge SEC’s Request

Judge Torres made a significant decision in July regarding the legal case between the SEC and Ripple. She concluded that the sale of XRP to retail investors on exchanges is not considered securities due to the blind bid process. However, when the same assets are sold to institutional investors, the situation is different.

The SEC's lawsuit against Ripple alleged that the company sold securities without proper registration, even in secondary markets. However, the judge's ruling delivered a significant setback to the SEC's case.

The SEC has decided to appeal the ruling and filed a brief on August 9. The agency mentioned a similar incident where a judge dismissed the XRP ruling in another case against Terraform Labs and its founder, Do Kwon.

An interlocutory appeal happens when a trial court decision is challenged while other parts of the case are still ongoing. These types of appeals are usually permitted only under certain circumstances. In Ripple's opposition, they argued that the SEC should be able to appeal Judge Torres' decision after a final judgment is made, following the normal procedure.

Ripple CEO Determined To Prove SEC Wrong

Ripple opposed the SEC's motion for three reasons. The first reason is that the judge's ruling was not solely a legal question. Additionally, Ripple argued that the Commission's disagreement did not provide a strong basis for a difference of opinion.

Ripple stated that an immediate appeal of the ruling would not result in the termination of the legal case. Brad Garlinghouse, the CEO of Ripple, commented that even if the appeal is granted, it will not alter the fact that XRP is not considered a security.

The Ripple chief disagrees with the SEC's claims that he and his partner acted recklessly in regards to the crypto asset's security status. He finds these claims to be "utter nonsense" and is determined to prove the agency wrong.