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Ripple’s legal team challenges SEC appeal in XRP case.

Ripple’s legal team has argued that the SEC did not meet the necessary requirements to request an appeal in its ongoing lawsuit.

In a filing made on September 1 to the U.S. District Court for the Southern District of New York,

Ripple’s lawyers stated that the SEC’s grounds for appeal primarily stemmed from their dissatisfaction with the judge’s ruling that XRP did not qualify as a security for retail investors.

The legal team emphasized that the exceptional circumstances needed for an interlocutory appeal were absent in this case and urged the judge to deny the appeal request and any potential stay.

Furthermore, Ripple stated that the SEC failed to meet the standard for a stay,

even after the Individual Defendants pointed out this omission in their pre-motion letter.

Ripple and the Individual Defendants jointly oppose the SEC’s appeal request.

SEC Appeals July Court Decision on XRP, Ripple CEO Criticizes Commission’s Actions

In August, the SEC initiated an appeal and requested a stay regarding a court decision made in July by Judge Analisa Torres,

who determined that XRP did not qualify as a security according to SEC guidelines.

The SEC argued that there were significant differences of opinion concerning the relevant laws.

The SEC originally filed a lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020.

This legal action led to several exchanges delisting the XRP token to avoid potential legal complications.

However, following Judge Torres’ ruling, many of these exchanges expressed intentions to relist XRP or explore the possibility in the future.

In response to the SEC’s actions, Brad Garlinghouse expressed his disappointment with the commission.

In a post on August 29, he stated, “It’s unfortunate that many members of the US crypto community have to rely on legal proceedings to demonstrate that the SEC is acting beyond its jurisdiction and consistently mistaken in both facts and law.”

In 2023, the SEC has intensified its scrutiny of various cryptocurrency companies,

such as Binance and Coinbase, alleging securities violations.

On August 29, asset manager Grayscale achieved a significant legal triumph against the SEC when an appeal resulted in an order for a review of its application for a spot Bitcoin exchange-traded fund (ETF).

Meanwhile, the civil lawsuit involving Ripple and the SEC remains ongoing. Judge Torres has proposed a jury trial for the case, scheduled to commence in the second quarter of 2024.

The legal battle between Ripple and the SEC continues to unfold as both parties prepare for the upcoming trial.

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