- Ripple and its executives opposed the SEC’s motion to file an appeal in the lawsuit.
- Ripple argues that there is no legal rule to back the SEC’s contention that the court reached the wrong result in applying the Howey Test to XRP.
- SEC vs. Ripple lawsuit cannot be terminated by appeal as payment giant says that ruling on XRP’s institutional sales is still pending.
Ripple and its executives Brad Garlinghouse (CEO) and Chris Larsen (Co-founder and Executive Chairman) have opposed the Securities & Exchange Commission’s (SEC) motion to file an interlocutory appeal.
In its filing, the payment giant explains that there is no legal rule backing the SEC’s request to file an appeal. Throughout the long drawn legal proceedings, the SEC insisted on the application of the Howey Test to determine whether XRP is a security or investment contract. With Judge Torres’ application, the ruling impacts the regulator’s other lawsuits and this has motivated the SEC to file an appeal.
According to XRPL Layer 2 project builder and former lawyer Scott Chamberlain, the SEC won on the law front and lost on the case facts. Ripple and its executives argue that this does not justify an appeal ahead of a final verdict in the SEC vs Ripple lawsuit.
Ripple opposes SEC motion to appeal XRP ruling
Ripple, a cross-border payment remittance firm, filed a motion to oppose financial regulator SEC’s application to appeal XRP ruling. Since the beginning of the SEC’s lawsuit against Ripple, the regulator insisted that the court apply the Howey Test to facts and determine whether XRP is an investment contract.
Upon successful application of the Howey Test, Judge Analisa Torres determined that XRP in itself is not a security. The ruling handed Ripple a partial win against the SEC, this outcome has influenced the regulator’s lawsuits against Coinbase and other cryptocurrency firms and projects. The SEC has applied to file an interlocutory appeal, asking the court to revisit the ruling and application of the Howey Test. However, XRP proponents and community members argue that the SEC “won on the law and lost on the facts.”
In short, the SEC won on the law and lost on the facts. They shouldn’t be allowed to appeal the law they won on so it can be adjusted to the facts they lost on. That will just raise new legal issues, lead to further appeal points, and complicate everything. They should wait until… https://t.co/BMM0psLs9d
— Scott Chamberlain | ☠️ (@scotty2ten) August 16, 2023
In its filing, Ripple states that there is no legal rule backing the SEC’s request to file an interlocutory appeal. Further, the final verdict in the SEC vs. Ripple lawsuit could influence the outcome of the appeal.
At the time of writing, XRP price is $0.5892 on Binance, recovering from the weekly low of $0.5717.
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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