Bill Morgan, a supporter of Ripple, has clarified Ripple Labs’ position on the SEC’s (the Securities and Exchange Commission) request for an interlocutory appeal. Morgan is still upbeat about the future of Ripple’s digital currency, XRP, and thinks that accepting the SEC’s request will merely prolong the already protracted legal dispute.
The SEC has accused Ripple Labs of using XRP to conduct unauthorized trading in securities. But in July 2023, Judge Analisa Torres decided that the programmed sale of XRP tokens did not break securities regulations, giving Ripple a substantial victory.
Following this verdict, the SEC moved quickly to challenge the court’s ruling involving XRP by requesting certification for an interlocutory appeal in the U.S. District Court for the Southern District of New York.
Ripple Labs has countered the SEC’s request for an interlocutory appeal by filing a memorandum of law. They argue that the essential exceptional circumstances needed for this appeal are lacking.
This legal move intensifies the uncertainty about the future of XRP and Ripple Labs, as they remain locked in a critical legal battle with potential implications for the cryptocurrency industry.
The defendants added, “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 the defendants transactions in XRP.”
Morgan clarified that the SEC aims to challenge the rulings on institutional sales and the definition of investment contracts. Despite the potential for an extended legal dispute, he stressed that XRP’s status as a security is unlikely.
Ripple Labs and SEC set dates for upcoming trial amid XRP optimism
A list of dates indicating their availability and non-availability for the upcoming...