Ripple RESPONDS To SEC Appeal

By Vince • September 2, 2023 12:24 pm • Comments

Ripple has officially responded to the SEC’s request for an interlocutory appeal.

In the filing, lawyers for the company asserted that the Securities and Exchange Commission’s appeal had no merit—citing the SEC’s disagreement as not being appropriate grounds for appeal.

Legal counsel for the firm went on to say that the only reason the SEC even filed an appeal was merely because they were dissatisfied with the verdict.

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Ripple’s Chief Legal Officer, Stuart Alderoty directed the XRP community to a specific passage within the recent filing: “Worth a read IMO, especially the footnotes. Fn. 5 is one of my personal favorites.”

Here is a snapshot of the footnote Alderoty referenced, it reads:

The SEC states (at 16) it “does not seek appellate review of any holding relating to the act that the underlying assets here are nothing but computer code with no inherent value.

” The court made no such ruling. To the contrary, undisputed evidence established XRP’s inherent utility as a bridge currency to facilitate cross-border transactions.

See ECF No. 825 at 7. Instead, the Court found that an XRP token is not, in itself, an investment contract because it does not, in itself, meet Howey’s requirements.”

Bitcoinist dissected the court documents:

In its appeal request, the SEC claims it is pursuing what is simply a “legal question” applicable to every digital asset case.

However, Ripple’s legal team believes that the court’s summary judgment does not present “a controlling question of law suitable for interlocutory appeal”.

Attorney John E. Deaton explained:

“As expected, Ripple demonstrates that an interlocutory appeal here is simply not warranted.

The SEC has always maintained Howey is a fact-specific inquiry and for an interlocutory appeal to be warranted the 2nd Circuit should not have to review the extensive factual record.

Footnote 2 destroys the SEC’s argument on this matter.”

Deaton continued: “But the SEC’s latest shift of “litigation positions to further its desired goal[s],” like its earlier ones, shows no “allegiance to the law”—Ripple ’s Opposition to the SEC’s requests for an early appeal. Judge Torres will not grant this interlocutory appeal.”

U Today added than many legal experts agreed that the SEC does not have suitable grounds for appeal:

A similar view was expressed by Fred Rispoli, an attorney who also participated in the Ripple action, who indicated that it was difficult for him to envisage the judge allowing the SEC’s motion because the legal analysis favored Ripple.

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