Ripple Executives Push Back Against SEC’s Bid to Halt Scheduled Trial Amid Appeal Plans
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In a significant development within the ongoing Ripple vs. SEC legal saga, Ripple’s high-ranking executives, Chris Larsen, and Brad Garlinghouse, have taken a firm stance against the U.S. Securities and Exchange Commission’s (SEC) attempt to pause the trial proceedings.
This move comes on the heels of the SEC’s bid to initiate an interlocutory appeal, seeking to address the status of Ripple’s programmatic XRP sales and distributions.
Ripple Executives Firmly Counter SEC’s Expected Appeal, Citing Legal Grounds
In a recent tweet, veteran attorney, James Filan revealed that Ripple’s leaders have taken a strong stance against the forthcoming interlocutory appeal by the U.S. Securities and Exchange Commission (SEC). While this move comes after Ripple’s earlier plea to the court to reject the SEC’s request, providing three distinct grounds for their stance;
Firstly, Ripple contended that the court’s ruling did not involve a pivotal question of law.
Secondly, it highlighted the absence of substantial grounds for any conflicting interpretations by the SEC.
Finally, Ripple put forth the assertion that an immediate appeal would not contribute to the timely resolution of the ongoing litigation.
By underscoring these arguments, the Ripple executive team asserts that the SEC’s pursuit of an interlocutory appeal is not justified by extraordinary occurrences, thus refusing to appeal to the court.
Ripple Executives Counter SEC’s Bid to Halt Proceedings
Ripple’s top executives, Chris Larsen and Brad Garlinghouse, who are defendants in the ongoing case, opposed the SEC’s request for a trial pause.
The executives disagreed with the SEC’s wish to “stay the case” pending an interlocutory appeal. Ripple’s legal team urged the court to proceed with the scheduled trial to address the SEC’s claims.
Previously, the SEC’s initial claim alleged that Brad Garlinghouse and Chris Larsen acted recklessly in the distribution of XRP by Ripple. Future on July 13, Judge Torres confirmed that the case would indeed proceed to trial. The trial is set for Q2 2024, with parties providing blackout dates for efficiency.
Following this, the SEC sought permission to file an interlocutory appeal against Judge Torres’ decision. This appeal targets the ruling on Ripple’s non-securities categorized programmatic XRP sales and distributions. The SEC also sought to “stay the proceedings” concerning the case against Ripple executives.
Four Factors Against SEC’s “Stay” Request
In light of the SEC’s “Stay” request, the executives have identified and presented four crucial factors. These factors should be taken into consideration by the court before deviating from the default statutory rule.
The court is urged, first and foremost, to assess the SEC’s likelihood of success in the appeal.
Additionally, it should carefully consider the potential irreversible harm that could befall the SEC without implementing a stay.
Thirdly, the executives of Ripple request the court to carefully consider how imposing a stay would affect all parties involved. Finally, they emphasizes the significance of taking into account the public interest surrounding this matter.
Ripple’s executives argue that the SEC’s appeal is unlikely to succeed and will not cause irreparable harm. Moreover, they urge caution, noting that a stay would have a negative impact on the individual defendants. They emphasize that proceeding with the trial aligns with the public interest.
