In the SEC vs. Ripple case, the SEC seeks Ripple appeal of a previous ruling, which has drawn accusations of hypocrisy from Ripple’s legal team. This heightens the legal conflict and prompts concerns about regulatory uniformity in the cryptocurrency realm.
SEC Seeks Ripple Appeal Amid Legal Complexity
On September 8, the United States Securities and Exchange Commission (SEC) decided to review the decision by the court concerning the cryptocurrency XRP. For the said reason, they approached the court and took a legal step. The earlier decision concluded that XRP is not a security if regular investors buy it. In response, the SEC showed concerns about the complexity of legal issues related to a test named the Howey test. This test is the qualification test for being classified as an investment contract. Therefore, the SEC sought a review of the prior decision.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The SEC has filed its Reply Memorandum in Further Support of its Motion to Certify Interlocutory Appeal.https://t.co/KE1MzYKbVD
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) September 8, 2023
SEC decided to temporarily stop ongoing legal proceedings unless the court holds a review. For this, they submitted a formal request by approaching a court in New York to reconsider the decision. They asserted that the legal proceedings are complicated and too important to get the attention of the higher court. They were also sure enough about all the incompatibility found in similar cases before.
This move by SEC to appeal against Ripple is against the statement of its own Chair, Gary Gensler. He was found declaring that recent regulations by the SEC were enough to regulate the crypto market. The legal war began in August, initiated by SEC with its aim to challenge the decision made by Analisa Torres.
Judge Torres made this decision in July. The decision was made regarding the sale of XRP as a security. The judge stated that XRP violated the laws when major investors were buying the crypto. However, the sale was not considered a security sale, while ordinary individual investors made a purchase. The appeal will only proceed to a higher court if the judge approves the SEC’s renewed request for review. However, the market response to the recent SEC appeal against Ripple is not positive.
Ripple’s Lawyer Accuses of SEC’s Hypocrisy Unleashed
Stuart Alderoty is the lawyer who represents Ripple. The lawyer criticized the appeal by the SEC due to its change in statements from the past. He recalled the stance where Gary Gensler, former SEC chairman, was formerly claiming the rules to be adequate. But now, this appeal is nothing but a “hypocritical pivot.”
Another SEC filing, another hypocritical pivot…
After years of its chairman saying the “rules are clear and must be obeyed” the SEC now cries that an appeal is urgently needed to resolve these “knotty legal problems." https://t.co/ige4neIWRD
— Stuart Alderoty (@s_alderoty) September 8, 2023
Another lawyer, James Filan, also condemned the sudden turn by the SEC. James called this SEC’s appeal inconsistent with their past try to stop legal proceedings.
The XRP supporters asserted that the response by Alderoty might seem hard to the people unaware of the case, but it accurately reflected the sentiments of the presiding judge.
The current controversy regarding the SEC seeking Ripple appeal has gained much attention in the crypto world. The judges called the SEC’s actions “arbitrary and capricious” in some other cases. Meanwhile, Chris Larsen, Executive Chairman of Ripple, believes that the SEC’s strategy of enforcing regulations through legal proceedings will be experiencing changes. Thus adding more complexity to this and other ongoing legal disputes.
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