Ripple opposes SEC motion to file an appeal, waits for final verdict in SEC vs Ripple lawsuit

  • 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 still pending.

The SEC filed a motion for an interlocutory appeal against Judge Torres’ ruling, citing the impact on the regulator’s other lawsuits.

Ripple filed a motion asking the court to deny the SEC's request to file an interlocutory appeal. The payment giant explains that the SEC required the Howey Test to be applied to the Ripple lawsuit since the beginning of the legal battle, once its application resulted in an outcome that affects the SEC's other lawsuits, the regulator decided to file an appeal. There is no legal rule, according to the motion, to support the SEC's application for an appeal at this point in the case, ahead of the final ruling in the lawsuit.

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.

Also read: XRP price likely to rally as Ripple gears up to hand US SEC a crushing defeat, according to pro-XRP attorney

Ripple opposes SEC motion to appeal XRP ruling

Ripple, a cross-border payment remittance firm, filed a motion to oppose the financial regulator’s application to appeal the 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, and 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. 

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.

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The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

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