Lawyers claimed the SEC’s justification for the appeal was based on “dissatisfaction” with a court ruling from July that the XRP cryptocurrency did not mainly meet the criteria for classification as a security.
Lawyers stated that the SEC’s decision to appeal was primarily driven by its dissatisfaction with a court ruling from July. This ruling concluded that the XRP cryptocurrency didn’t fulfill the criteria to be considered a security. In their lawsuit against the SEC, Ripple’s legal team contended that the agency hadn’t met the required criteria for the appeal.
Even when the individual defendants pointed out that omission in their pre-motion letter, the SEC “has not even attempted to meet the standard for a stay,” said Ripple. “The individual defendants write in opposition to the SEC’s request in separate letters. Joining that opposition is Ripple.
In December 2020, the SEC initiated a legal action against Ripple, its CEO, Brad Garlinghouse, and co-founder Chris Larsen by filing a lawsuit. To prevent potential legal entanglements, many exchanges delisted the XRP coin as a result. After the Torres ruling, several of the same corporations said they would relist the token or would think about doing so in the future.
On August 29, Garlinghouse stated in an X post, “It’s regrettable that so many in the US crypto community have to resort to the legal process to illustrate this SEC is out of control and continually wrong on the facts and the law.
In 2023, the SEC allegedly targeted a number of cryptocurrency companies, including Binance and Coinbase, for securities breaches. Asset management firm Grayscale won a legal battle with the SEC on August 29 after an appeal ordered a review of its application for a spot Bitcoin ETF worth $25,736.
The lawsuit dispute between the SEC and Ripple is currently ongoing. Torres proposed that the case’s jury trial start in the second quarter of 2024.