Ripple legal team has filed a motion asking the court to deny the SEC move for an interlocutory appeal. The lawyers argue that the Commission has not met the exceptional requirements to get approved for an appeal.
In a recent turn of events, Ripple attorneys filed a motion with the U.S. District Court for the Southern District of New York on September 1, praying the court to reject the Securities and Exchange Commission’s request because it is largely based on “dissatisfaction” with the judge’s decision on the classification of XRP as non-security.
District Judge Analis Torres in July ruled that the open sale of XRP tokens to individual investors did not qualify securities sales. Ripple lawyers argue that the case lacked “exceptional circumstances required for interlocutory appeal” and prayed the Judge to deny the request by the SEC.
Before the court approves the SEC’s request, it has to either prove that a different Judge will disagree with the initial decision or that the appeal will speed up the case to reach a quick conclusion. However, Ripple’s lawyers argue that the watchdog has not been able to prove otherwise.
SEC moves to file an interlocutory appeal
The Securities and Exchange Commission in August moved a motion to file an interlocutory appeal challenging the court’s decision on the classification of XRP as non-security. At the time of filing, the Commission claimed that it had “substantial ground for differences of opinion” on the laws at issue.
The case between Ripple and the SEC has been going on for 3 years now. The SEC sued the blockchain giant in December 2020, alleging that it offered unregistered securities in XRP.
The lawsuit immediately triggered a domino effect as it prompted many crypto exchanges to begin delisting the token from their platforms pending the outcome of the case. However, following Judge Torres’s ruling in July, some of these exchanges began relisting the token. Exchanges like BitGo, Binance, and Coinbase, were among the first exchanges to resume offering XRP to their customers.
While the case between Ripple and the SEC is still ongoing, the Commission proceeded to target several cryptocurrency exchanges including two of the largest, Binance, and Coinbase for allegedly operating unregistered exchanges and offering unregistered securities.
Ultimately, the Ripple vs. SEC case has been proposed to go on a full jury trial in Q2 of 2024.
Related Reading: Judge Grants SEC Permission to File Interlocutory Appeal Against Ripple Labs
