- Ripple objected to SEC’s interlocutory appeal stating that the Commission is hastily pursuing an appeal on a legal issue.
- The XRP network saw increased activity amid the developments as industry leaders came in support of Ripple.
The U.S. Securities and Exchange Commission (SEC) has been engaged in a close-knit battle with Ripple over the last two years. On Friday, September 1, Ripple objected to SEC’s interlocutory motion over the federal judge’s ruling that XRP isn’t a security.
On Friday, Ripple filed a request with US District Judge Analisa Torres in New York, urging her to reject the SEC’s appeal request. Ripple argued that the SEC is hastily pursuing an appeal on a legal issue that has implications for all digital asset-related cases, even though the circumstances in other SEC enforcement actions differ in both factual and legal procedural aspects.
The SEC needs to obtain Judge Torres’s approval for the appeal since her ruling wasn’t a final judgment. Additionally, the SEC is seeking to temporarily suspend its lawsuit against Ripple, which alleges the offering of unregistered securities, while the appeal process is ongoing.
In its Friday submission, Ripple highlighted that several critical matters remain unresolved in the ongoing case. This includes the question of whether the sales of XRP to institutional investors fall under the SEC’s jurisdiction. Ripple emphasized that if the SEC is granted this unusual appeal, it intends to contest the judge’s determination that these sales constituted securities transactions.
Furthermore, Ripple’s CEO Brad Garlinghouse and Chairman Christian Larsen, both of whom are defendants in the case, have expressed their opposition to the SEC’s request. They argued that Judge Torres made the correct decision and that the public interest is best served by proceeding to trial.
XRP Registers Strong Network Activity
On-chain data shows that XRP is experiencing significant increases in utility as the month begins. Alongside reaching record highs in on-chain transaction volume (4.8 billion XRP) and circulation (2.03 billion XRP) today, there has also been substantial growth in the development activity of the fifth-largest cryptocurrency in the market.
🧑💻 #XRP is seeing major utility spikes to start the month. In addition to today’s milestone highs in #onchain transaction volume (4.8B $XRP) and circulation (2.03B $XRP), the development activity for the 5th largest cap asset in #crypto is up big as well. https://t.co/AdWcrUun9n pic.twitter.com/QHQ6U8Q0J5
— Santiment (@santimentfeed) September 1, 2023
Amidst the escalating legal battle, XRP’s market indicators paint a mixed picture. Although it reached an intra-day high of $0.512, XRP experienced a 2.44 percent retracement, settling at $0.4961. Nonetheless, this minor setback hasn’t stifled the token’s momentum. Notably, a breakthrough past the $0.512 barrier could establish new resistance levels at $0.525 and $0.540.
Conversely, failure to overcome these resistance levels may prompt XRP to test the support zones at $0.480 and $0.460. Despite a 2.06 percent drop in XRP’s market capitalization to approximately $26.26 billion, its 24-hour trading volume increased by 6.63 percent to around $1.11 billion.
Amid Ripple’s objection to the SEC’s interlocutory filing, industry players have come in support of Ripple. Coinbase chief legal officer Paul Grewal said: “Nothing but ‘facts and circumstances’ one day. Until it’s all a ‘pure question of law’ the next. @s_alderoty and his team appropriately lay waste to this hypocrisy.
On September 2, XRP lawyer John E. Deaton pointed out that the U.S. SEC’s double standards are catching the attention of federal judges and members of both houses of the U.S. Congress. Deaton also emphasized that Judge Sarah Netburn used the same term when discussing the SEC’s inconsistent stances during the Ripple vs. SEC lawsuit. He believes that the SEC’s interlocutory appeal will be rejected.
No way IMO.
— John E Deaton (@JohnEDeaton1) September 2, 2023
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