Ripple Labs Objects SEC’s Request for Interlocutory Appeal: Lawyer Comments

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Ripple Labs Objects SEC’s Request for Interlocutory Appeal
  • Ripple Labs filed a motion, objecting to the SEC’s request for an interlocutory appeal in the ongoing lawsuit.
  • Bill Morgan shares insights on Ripple Labs’ move, reinforcing his positive view on XRP’s status.
  • John Deaton believes that Judge Analisa Torres will not grant the SEC’s request.

Ripple advocate Bill Morgan has provided insights on Ripple Labs’ objection to the Securities and Exchange Commission’s (SEC) request for the interlocutory appeal, reaffirming his sanguine perspective on the status of Ripple’s XRP. The lawyer argued that if the court grants the regulator’s request, the ongoing legal tussle would prolong even a few years more.

Though the SEC alleged Ripple Labs for illegally trading deemed securities, XRP, the platform saw a landmark victory in July 2023, when Judge Analisa Torres ruled that the programmatic sale of the XRP token was not a violation of the securities law. Shortly after the ruling, the SEC applied in the U.S. District Court in the Southern District of New York, to certify for interlocutory appeal, challenging the court’s decision on XRP.

On Friday, Ripple Labs filed a memorandum of law in opposition to the SEC’s motion for the interlocutory appeal, claiming, “The exceptional circumstances required for interlocutory appeal are absent”. The defendants continued by stating,

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.

Meanwhile, Morgan, shedding light on the complications of the SEC’s demand, asserted that the agency is trying to appeal the “findings on institutional sales” and the “issue of statutory meaning on investment contracts”. Though he pointed out the higher possibility for prolonged warfare, he reiterated, “Happily during that whole process XRP itself will not be and never will be a security”.

Earlier today, another prominent XRP defendant John Deaton shared a Twitter thread, commenting that Judge Torres would not grant the SEC’s interlocutory appeal. He strengthened his view by referring to Judge Sarah Netburn’s previous comments on the SEC, which read, “The SEC is adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law”.