Lawyers of Ripple believe that the U.S Securities and Exchange Commission hasn’t provided enough evidence to justify involving an appeal court in its ongoing legal dispute with Ripple.
As per the document filed on September 1 with the U.S. District Court for the Southern District of New York, Ripple’s legal team argued that the SEC’s decision to appeal is mainly based on unhappiness with the judge’s ruling.
The lawyers stated that the specific conditions needed for an appeal before the main trial are not met in this case. They requested the judge to reject any appeal request or request. Ripple stated that there are no controlling law questions in the SEC’s motion for an appeal.
Ripple said in a statement that, “The SEC has not even attempted to meet the standard for a stay, even after the Individual Defendants identified that omission in their pre-motion letter.”
In August, the SEC moved to appeal and temporarily halt a court ruling from July. In a previous ruling by Judge Analisa Torres, it was determined that XRP sold to retail will not be considered to be a security under the SEC’s guidelines.
The SEC pointed out that a federal judge Jed Rakoff disagreed with Torres’s approach in his ruling in the SEC’s case against Terraform Labs and its founder Do Kwon.
Judge Rakoff found that the Terra USD token could potentially be considered a security when sold to regular investors.
Ripple explained that the reasons behind each case’s outcome were distinct due to differences in the factual foundations of each case.
The SEC has a deadline of September 8 to respond to the filing submitted on 1 September.
In 2023, the SEC, focused its attention on several crypto companies like Binance and Coinbase, accusing them of breaking securities laws.
The legal dispute between the SEC and Ripple is still ongoing. Torres, who is involved in the case, suggested that a jury trial should take place in the second quarter of 2024.
Also Read: Judge Torres Approves SEC’s Move for Appeal in Ripple Case
