Ripple argued that the SEC has not provided sufficient evidence to support its position.
This case may play a significant role in determining the legal framework for cryptos.
Ripple Labs Inc. and its senior executives have strongly fought the SEC’s attempts to validate an interlocutory appeal. This case may play a significant role in determining the legal framework for cryptocurrencies in the United States, particularly whether or not XRP, Ripple’s native token, is an investment contract.
The United States Securities and Exchange Commission (SEC) is pressing for an interlocutory appeal on the grounds that the Ripple case presents legal problems with far-reaching implications for all digital assets. Ripple’s response is comprehensive.
SEC’s Pursuit
Together with the individual defendants, Ripple has opposed the SEC’s request for a stay, arguing that the SEC has not provided sufficient evidence to support its position.
The SEC began its crackdown in December 2020, according to a document made on September 1st, claiming that the majority of Ripple’s transactions connected to XRP spanning over eight years should be seen as investment contracts.
Garlinghouse and Larsen, along with Ripple, feel that the SEC’s pursuit of this lawsuit is representative of the agency’s policy of selectively regulating the U.S. cryptocurrency sector.
The team stated that SEC has underlined the main issue at stake, which is whether or not the Howey test can be applied to Ripple’s particular operating conditions. Earlier in July, Judge Analisa Torres ruled that XRP sales in the secondary market are not deemed securities. Post the ruling price of XRP skyrocketed.