Ripple Rejects SEC Motion: Will Regulatory Legal Feud With Ripple Continue?

XRP crypto assets. (Photo; Doc. Blockchain News)

JAKARTA - Ripple Labs has responded to the US Securities and Exchange Commission (SEC)'s efforts to appeal the decision issued by Judge Analysis Torres regarding XRP.

On Friday, September 1, Ripple Labs responded to the SEC's action of filing an appeal to the court. This move is part of the SEC's efforts to reject the decision of District Judge Analysis Torres regarding XRP's offerings and sales, which Ripple calls "programmed" through crypto trading platforms and "other distributions". Regulators also want to run the district court process.

Ripple's legal team confirmed that the court should reject SEC's motion for certification and suspension pending an appeal. They argue that there is no "extraordinary situation" that justifies this interlocutory appeal.

First, Ripple claims that court summary justice orders do not raise legal questions that require appeals, even though the SEC's statement is otherwise. Second, they assert that the main reason for refusing is the SEC's dissatisfaction with the court's implementation of Howey (Howey Test) tests against most XRP transactions.

In addition, Ripple's lawyers highlighted that the SEC acknowledged the need for a protracted court process, despite the results of the appeal filed by regulators. They stressed that this certification would not accelerate the end of the litigation process.

It is important to note that this week, the SEC suffered another defeat in its legal feud against crypto companies. The United States Court of Appeals to the District of Columbia Circuit supports Grayscale Investments in the Exchange Trade Fund (ETF) case proposed by crypto asset manager Greyscale.