In a recent report, the Chief executive official and the executive director of Ripple Labs have commented on the recent interlocutory appeal that the United States Securities and Exchange Commission is bidding for over the ongoing case about the classification of XRP tokens as securities.
Following the recent court judgment that gave Ripple Labs victory over the SEC by ruling that the XRP token is not a securities asset, the SEC reportedly filed an interlocutory appeal in a district court, requesting a dialogue with Ripple Labs executives. However, Ripple is not having it as its executive immediately challenged the commission’s moves.
According to the report, Brad Garlinghouse and Chris Larsen, the CEO and the Executive Director of Ripple, respectively, took a bold stance against the SEC’s recent dialogue appeal, challenging the commission’s motives through their legal representatives.
In the motion filed by their legal representative, the two executives strongly countered the SEC’s bid for an appeal, claiming that the commission does not have enough justification to call for an extreme measure such as an appeal for dialogue over a case already decided in court.
Ripple Strongly Opposed Interlocutory Appeal By SEC
Furthermore, Garlinghouse and Larsen asserted firmly that it is unlikely for the SEC to succeed in getting its appeal approved as it lacks legal merit. The duo added that the request from the commission accentuates the importance of the July 13 decree, which ruled that XRP’s attributes do not match that of typical security.
In addition, they condemned the regulator’s charges claiming they are reckless and unfounded as they believe the upcoming trial would back their assertions, indicating them. Also, the Chief Legal Officer of Ripple, Stuart Alderoty, confirmed via his post on X (Twitter) that the company is firmly against the SEC’s bid for an interlocutory petition.
In his tweet, he stated that there is no specific situation that warrants the commission to breach the rule that asserted that all warring parties settle all pertinent issues first before either party can file for any appeal. Garlinghouse added that the ongoing review of XRP’s classification as a security or commodity is not even eligible for trial.
Furthermore, the CEO pointed out that the recent court verdict, which significantly supported their stance, has boosted their confidence to contradict all allegations that the SEC charged against them following standard legal protocol. Garlinghouse also noted that the July 13 ruling stated that the SEC might be put to trial to back their allegations against the firm, an event which the firm is looking forward to.
The Public Awaits The Final Outcome Of This Lawsuit
It is worth noting that the opposition moti9n which Ripple filed emphatically pointed out that the SEC’s lawsuit against them has exposed the firm’s top executives to potential irredeemable reputation damage.
Also, the document questioned the ulterior motives that drove the SEC to execute this particular action. In addition, the top executives highlighted that the reckless approach that breeds regulatory ambiguity, which the United States Securities and Exchange Commission employed, has massively stunted the innovation and growth wi5hing the cryptocurrency industry.
However, even though Garlinghouse and Larsen claimed that the court ruling on July 13 firmly stated that XRP is a non-security asset, the judgment did not use any precedent case to decide its verdict. Hence, legal experts suggested that the case is very much open to further probing if the SEC wished to file for appeal.
Furthermore, concerning Ripple Labs’ claims that the case might tarnish the image of itself and some of its top executives, speculators considered it as trivial as they assumed the case had already affected the image of the company giving the legal probe and public debate that occurred since when the case started in 2021.
Overall, as the legal brawl continues to unfold, the classification of XRP is put to the test, and it also emphasizes the urgent need for regulatory clarity within the broader crypto industry. Indeed, the final verdict concerning this lawsuit between the SEC and Ripple would automatically be a strong precedent for crypto asset-related cases in the future.
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