Ripple Labs’ lead lawyer says the US Securities and Exchange Commission (SEC) is being hypocritical by calling for an appeal in last month’s landmark XRP court ruling.
In a new thread, attorney Stuart Alderoty say that the regulator’s latest filing for an appeal to resolve “knotty legal issues” is hypocritical, as SEC Chairman Gary Gensler has always said the rules are crystal clear.
“Another SEC filing, another hypocritical pivot…
After years of saying that the ‘rules are clear and must be followed,’ the SEC is now calling for an appeal to be urgent to resolve these ‘knotty legal issues’.”
In July, a judge ruled that automated, open-market sales of the crypto asset XRP, which is associated with Ripple Labs’ payment platform, do not count as securities transactions.
However, the SEC recently filed a motion to appeal this case, saying there are legal contradictions that need to be cleared up by an appellate court.
“The SEC now respectfully requests certification for appellate review because the issues raised in the Court’s summary judgment order represent precisely the kinds of ‘knotty legal issues’ that led Congress to provide in interim review in the case of Weber v. USA. The rulings on programmatic sales and other distributions are legal issues.
And they pose ‘knotty legal problems’. At least two opinions within this district reach conflicting legal conclusions on these issues, and many other courts are considering whether similar offers and sales (whether with blind bid/ask trading platforms or buyers purchasing in exchange for goods and services) meet Howey’s requirements . [test].”
The SEC also claims that the defendants have not raised any case relevant to the Howey test, which stems from a landmark 1946 Supreme Court decision and is now used to determine whether an asset counts as collateral or not .
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