Ripple Fires Back at SEC’s Appeal, Calls It “Utter Nonsense”

The financial world is abuzz as Ripple’s bold retort to the SEC’s imminent interlocutory appeal captures headlines. What really happened? Let’s unwrap the details.

The Verdict That Set the Stage

The legal battle between Ripple and the SEC over whether XRP should be classified as security led to a landmark ruling:

• Institutional Sales: These were deemed as securities under the Howey test.
• Programmatic Sales and Other Distributions: These were not considered securities.

This unprecedented, bifurcated decision has now set the stage for the next phase of the legal battle: the SEC’s interlocutory appeal and Ripple’s filed opposition.

Ripple’s Response: A Three-Fold Opposition

Eleanor Terret, a journalist at Fox Business, broke the news of Ripple’s response, outlining the company’s opposition letter on the following grounds:

• No Controlling Question of Law: The Court’s Order doesn’t hinge on a pivotal legal question.
• No Substantial Ground for Difference of Opinion: According to Ripple, there’s no disagreement that justifies the appeal.
• No Benefit to Immediate Appeal: An immediate appeal is seen as futile in advancing the case.

Legal Minds Analyze

James K. Filan, a defense lawyer, emphasized the significance of Ripple’s opposition to the appeal. Meanwhile, Jeremy Hogan, another lawyer following the case, considered Ripple’s arguments solid but left room for the appeal to open new legal doors.

John Deaton, the founder of CryptoLawUS, lauded Ripple’s response, hinting at the influence of the Rakoff ruling on the decision and predicting Judge Torres might deny the SEC’s request.

Ripple Executives Stand Firm

Stuart Alderoty, CLO of Ripple expressed unyielding defiance against the SEC’s appeal. And then there’s Ripple’s CEO, Brad Garlinghouse, standing strong in the face of adversity, calling the SEC’s claims “utter nonsense.” That’s the kind of backbone you don’t often see.

Now, why should you care about a legal tiff between Ripple and the SEC? Because this isn’t just about XRP or digital assets. This is a story about overreach and pushing back. It’s a lesson in how the government reacts when something new challenges the status quo.

If Ripple’s successful, it won’t just be a win for them or for XRP holders. It’ll be a victory for innovation, and a slap in the face to the bureaucracy that too often stifles creativity and entrepreneurship.

Will Ripple be successful in its fight against the SEC? Tell us what you think.