Ripple's Legal Team Challenges the SEC: "Fails to Meet Necessary Requirements"

With Ripple's legal team challenging the very foundation of the SEC's appeal, the unfolding drama is a pivotal moment in crypto regulation history.

Discover key verdicts, major players' reactions, and what it might mean for the future of cryptocurrencies in the U.S.

SEC's Appeal Against Ripple is Under Scrutiny

Ripple's legal defense argues that the U.S. Securities and Exchange Commission (SEC) has not met the criteria for appeal.

Documents submitted to the U.S. District Court for the Southern District of New York on September 1st suggest that Ripple's defense believes the SEC's primary motive for appealing is their "dissatisfaction" with a judge's ruling stating the XRP token is not a security when sold to individual investors.

The defense pointed out the absence of the "special circumstances" required for an interlocutory appeal, urging the judge to reject the request for appeal or halt.

July's Court Verdict on XRP: Not Largely a Security by SEC Guidelines

In August, the SEC began its appeal against a July court decision, which ruled that a majority of XRP is not a security based on the SEC's guidelines.

At that time, the SEC claimed they had "sufficient grounds for differing opinions" on the relevant laws.

Back in December 2020, the SEC sued Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen. In response, several exchanges delisted the XRP token to avoid legal issues.

After partial victories for Ripple this year, many exchanges announced their considerations for relisting the token or exploring the possibility in the future.

US Crypto Community Speaks Out: Loss of Trust in SEC's Decisions

"It's sad that a large portion of the US crypto community has to resort to legal measures to prove that the SEC is consistently wrong both in fact and law," stated Garlinghouse in a post dated August 29th.

The SEC has filed lawsuits against numerous cryptocurrency companies in 2023 on suspicion of securities law violations, including giants like Binance and Coinbase.

As of August 29th, asset management firm Grayscale achieved a court victory, being directed to reassess their application for a physical Bitcoin Exchange-Traded Fund (ETF).

The civil lawsuit between the SEC and Ripple is ongoing. The court has proposed a jury trial set to begin in the second quarter of 2024.