The SEC has filed a reply memo to support its interlocutory appeal in its legal battle against Ripple, citing complex legal issues.
In this filing, the SEC argues that the issues raised by the recent court order present complex legal challenges that warrant an appeal.
In July of this year, the court ruled in favor of Ripple, declaring XRP non-security. As expected, the SEC opposes this decision and argues that it raises legal questions. They believe that these “knotty legal problems” warrant a review.
The SEC also accuses Ripple of lacking the motivation to swiftly resolve the lawsuit, alleging that Ripple aims to prolong the lawsuit to continue selling XRP to the public.
The SEC’s request is for the court to grant the interlocutory appeal and halt all further proceedings in the lawsuit until the appeal has been resolved.
To support this, it claims that doing so would conserve the legal resources of the court and the parties involved in the lawsuit. This new filing comes just a week after Ripple filed a countermotion to the SEC’s interlocutory appeal.
James Filan, John Deaton, Others React
James K. Filan (@FilanLaw), a defense lawyer and former federal prosecutor, drew attention to the reply memo in a post on X. In his reply, he called the SEC’s strategy to halt the proceedings laughable.
James K. Filan noted:
“The SEC’s argument that Judge Torres should stay the proceedings because the SEC is all of a sudden concerned about conserving judicial resources is laughable.”
As expected, many key figures in the XRP community share Filan’s sentiment. Pro-XRP Lawyer, John Deaton, went into more detail in a thread. He described that asking for a stay of all legal proceedings automatically prolongs the entire lawsuit which does not match up with their claim that they, unlike Ripple, want the lawsuit to get resolved swiftly:
“The professional embarrassment continues. The SEC now claims, unlike Ripple, it is only interested in the efficient adjudication of this case and that it is Ripple who wishes to prolong the litigation thus wasting valuable judicial resources.”
After going into even more detail on a potential path for the case, he says the SEC’s claim that it wants faster adjudication might be the dumbest argument he’s heard so far.
Stuart Alderoty, the Chief Legal Officer at Ripple also replied, saying, “Another SEC filing, another hypocritical pivot…” He highlights that the SEC chairman, Gary Gensler, has claimed for years that rules are clear and must be obeyed but is now looking for a way out.
The fate of the SEC’s interlocutory appeal request now rests with Judge Analisa Torres, who will decide whether or not to certify the appeal. Some experts already believe the interlocutory appeal is destined for rejection.