Breaking: SEC Files Reply Memorandum In Ripple Case

On Friday, the United States Securities and Exchange Commission (SEC) filed a 20-page reply memorandum of law in further support of the motion to certify its interlocutory appeal in the Ripple (XRP) Case.

In another attempt to save face, the SEC is trying to appeal the questions asked in the case, claiming that it has an institutional interest in resolving the case, whereas Ripple attempts to prolong the case to continue the sales of XRP. (How low can one stoop?)

Also Read: XRP Community Backs LBRY As It Decides To Appeal Against US SEC

The Demands

The SEC appeal asks to bring a stay on the entire case to preserve the resources of the Court and the parties involved. 

In a bold claim, the SEC states that Ripple, the “Defendants do not cite a single opinion involving Howey in which a court concluded that the interlocutory order did not involve a question of law.”

The SEC’s entire case rests on the opinion that the “Second Circuit has on multiple occasions granted interlocutory review of whether an instrument constituted a “security” in cases that have required the Court to study “the record before”.”

Gensler-led SEC also claims Ripple wrongly contends by “pretending as if the ruling” was based on undisputed facts about the sale and distribution of XRP. 

There is also a blatant disregard for Judge Torres, as the SEC says, “This Court determined that the legally relevant facts are uncontested. The Court did not act as a fact finder, and the SEC is not now trying to appeal any factual findings. The legal questions on which the SEC proposes interlocutory review are based on undisputed facts.”

Also Read: XRP Lawyers And Ripple Chairman On The Outcome Of US SEC Lawsuit

Basis For Interlocutory Appeal

Claiming substantial ground for difference of opinion, the SEC claims “(1) the Second Circuit has not addressed the issue or (2) courts are in conflict on the issue.”

The SEC tries to persuade the Court for an interlocutory appeal in an effort to end the case. The regulatory authority says that “like the court, (it) has institutional interest in the most efficient ultimate resolution of this litigation”

In the filing, the SEC asks for a stay with the supporting statement, “After three years of hotly contested litigation, the marginal harm of a stay pending resolution of key legal issues is low.”

It is shameful to see a regulatory authority of the United States filing for such claims despite having lost the case. Gary Gensler and the SEC disregard the millions of Ripple investors who have suffered as XRP price plummeted over the previous years due to the litigation.

The need for a proper crypto regulation is now! With the rising scrutiny on the crypto industry in the U.S it is essential that the government understand their duty to protect innovation in the country.  

Also Read: Ripple Reopens Registration For Victory Party, Fans Predicts Possible Happenings