Ripple Labs has lodged a complaint against the Securities and Exchange Commission (SEC)’s bid to appeal a federal judge’s ruling that the XRP token is not a security for public sale. The company has urged US District Judge Analisa Torres in New York to reject the SEC’s request, citing that the SEC is hastily seeking an appeal without considering the unique circumstances of individual digital asset cases.
The SEC requires Judge Torres’s permission to proceed with the appeal since her ruling was not a final judgment. Additionally, the SEC is seeking to pause its lawsuit against Ripple until the appeal is resolved. In a previous ruling, a US court sided with Ripple, stating that selling XRP on exchanges does not constitute an investment contract but acknowledged that XRP is a security when sold to institutional investors. The SEC argues that an immediate review is necessary as the outcome of this case may impact other cryptocurrency-related lawsuits.
Ripple’s filing emphasized that significant unresolved issues remain, such as determining the SEC’s jurisdiction over the sales of XRP to institutional investors. Ripple’s CEO and Chairman have also opposed the SEC’s request, asserting that proceeding to trial is in the best interest of the public. In another setback for the SEC, a court in Washington overturned the SEC’s decision to block Grayscale Investments LLC’s proposed Bitcoin exchange-traded fund, ordering the SEC to reopen the review process.
