Ripple advocate Bill Morgan recently shed light on Ripple Labs stance regarding the Securities and Exchange Commission’s (SEC) request for an interlocutory appeal.
Morgan remains optimistic about the status of Ripple’s digital asset, XRP, and believes that granting the SEC’s request would only further extend the ongoing legal battle.
The SEC had accused Ripple Labs of engaging in the illegal trading of securities through XRP. However, in a significant victory for Ripple, Judge Analisa Torres ruled in July 2023 that the programmatic sale of XRP tokens did not violate securities laws.
Both parties still have a lot to gain or to lose. Ultimately if there is no settlement much of the Torres decision may be appealed. The SEC is already challenging the findings that Ripple’s non-institutional sales are not investment contracts /1
— bill morgan (@Belisarius2020) September 2, 2023
Following this ruling, the SEC swiftly moved to request certification for an interlocutory appeal in the U.S. District Court for the Southern District of New York, challenging the court’s decision regarding XRP.
On the matter, Ripple Labs has responded by filing a memorandum of law opposing the SEC’s motion for an interlocutory appeal.
They assert that the necessary exceptional circumstances for such an appeal are absent. This legal development adds to the intrigue surrounding the future of XRP and Ripple Labs, as both parties continue to engage in a high-stakes legal battle that could have far-reaching implications for the cryptocurrency industry.
The defendants stated, “First, the Court’s summary judgment order does not present a controlling question of law suitable for interlocutory appeal.” They continued. “Second, the supposed substantial ground for disagreement is merely the SEC’s dissatisfaction with the Court’s application of Howey to most of Defendants’ transactions in XRP.”
Morgan explained that the SEC wants to appeal the findings about institutional sales and the meaning of investment contracts. Despite the possibility of a long legal battle, he emphasized that XRP will never be considered a security.
Today, XRP defendant John Deaton shared on Twitter that Judge Torres likely won’t approve the SEC’s appeal. He backed this up by mentioning Judge Sarah Netburn’s previous remarks, suggesting the SEC is prioritizing its goals over adhering to the law.