Ripple V SEC UPDATE: SEC Files New Memorandum

By Vince • September 9, 2023 12:08 pm • Comments

The Securities and Exchange Commission (SEC) is coming off as a sore loser in its battle against Ripple Labs.

By now it isn’t news that Ripple soundly defeated the SEC in all the issues that mattered the most in the case; still, there are loose ends that must be resolved before Judge Torres issues her final verdict.

A desperate SEC, led by Gary Gensler, is taking full advantage of these loose ends and filed a motion for an interlocutory appeal last month.

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Now, the regulatory agency is attempting to reinforce its motion for appeal with a memorandum the agency filed on Friday.

Attorney James K. Filan presented the memorandum and commented: “The SEC’s argument that Judge Torres should stay the proceedings because the SEC is all of a sudden concerned about conserving judicial resources is laughable.”

Ripple Chief Legal Officer Stuart Alderoty stated: “Another SEC filing, another hypocritical pivot…After years of its chairman saying the “rules are clear and must be obeyed” the SEC now cries that an appeal is urgently needed to resolve these “knotty legal problems.”

Coin Telegraph provided more details on the story:

As per a Sept. 8 filing, the SEC called for the U.S. District Court for the Southern District of New York to grant its motion for interlocutory appeal and “stay further proceedings until the resolution of that appeal.”

“The SEC respectfully requests certification for appellate review now because the issues raised by the Court’s order on summary judgment (D.E. 874) (‘Order’) present precisely the kinds of ‘knotty legal problems’ that led Congress to provide for interlocutory review.”

Previously, attorney John 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.”

According to U Today:

Because a trial has yet to be held, an interlocutory appeal may not resolve the case, according to Deaton, and may even add to the total process, requiring more judicial resources. Deaton stated that if an early appeal is granted, it might take 1.5–2 years for the 2nd Circuit to decide.

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