The SEC has filed a memorandum reply to support its motion for an interlocutory appeal.
The United States Securities and Exchange Commission (SEC) has filed a reply brief in support of its motion to certify an interlocutory appeal.
It is worth noting that the recent filing is a reply memorandum in which the SEC requests certification for an appellate review in its legal tussle against Ripple.
“The SEC respectfully requests certification for appellate review now because the issues raised by the Court’s order on summary judgment present precisely the kind of ‘knotty legal problems’ that led Congress to provide for interlocutory review,” it said.
SEC Argument
Recall that the court ruled on July 13 that Ripple’s programmatic sales of XRP and other distributions do not constitute securities. The SEC, which has expressed disappointment with the decision, said the order poses legal questions.
Furthermore, the SEC accused Ripple of having no institutional interest in efficiently resolving the lawsuit. It added that Ripple and its execs seek to prolong the litigation to continue selling XRP to the public.
To justify its request to stay further proceedings in the lawsuit, the SEC said the decision would help preserve the resources of the parties and that of the court.
Consequently, the SEC asks the court to grant its motion for interlocutory appeal and stay further proceedings of the case until the appeal has been fully resolved.
It bears mentioning that the SEC’s latest filing comes a week after Ripple filed a countermotion to the commission’s interlocutory appeal request.
With the latest filing, it is now left for Judge Analisa Torres to decide whether to certify the commission’s interlocutory appeal.
Top Crypto Stakeholders React
Meanwhile, the SEC’s latest filing has stirred reactions from top crypto stakeholders, including Ripple’s Chief Legal Officer Stuart Alderoty.
Reacting, Alderoty described the SEC’s filing as a “hypocritical pivot.” In a tweet yesterday, Alderoty said despite SEC Chair Gary Gensler claiming that crypto rules are clear and must be obeyed, the commission is now saying that “an appeal is urgently needed to resolve these knotty legal problems” in the Ripple case.
Another SEC filing, another hypocritical pivot…
After years of its chairman saying the “rules are clear and must be obeyed” the SEC now cries that an appeal is urgently needed to resolve these “knotty legal problems." https://t.co/ige4neIWRD
— Stuart Alderoty (@s_alderoty) September 8, 2023
In addition, seasoned lawyer James K. Filan also reacted to the filing, describing one of the SEC’s arguments as laughable.
“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,” he said.
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