Ripple vs SEC Legal Battle: Far from Resolution

Ripple and its Executives opposed the SEC's motion to file an Appeal in the Lawsuit

Ripple vs SEC legal battle: It's been a mostly sluggish summer for crypto — except in the courts, where a steady stream of regulatory actions, bankruptcy briefs, and developments in ongoing cases have helped provide some action for industry watchers. On Thursday afternoon, Federal Judge Analisa Torres granted the request from the SEC after the securities regulator sent a letter to Torres on August 9, arguing that her July decision that XRP is not a security per se could affect multiple pending court cases.

The SEC's request cited a prior case involving Terraform Labs, where the judge denied Terraform's dismissal request, disagreeing with the ruling that XRP is not a security made by Judge Torres. Scott Chamberlain, a former lawyer and XRPL Layer 2 project builder suggests that the SEC had a legal victory but a factual loss. Ripple and its executives contend that this doesn't warrant an appeal before the final verdict in Ripple vs SEC lawsuit.

In December 2020, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs, Inc. and two of its executives, Brad Garlinghouse and Chris Larsen. The primary reason for the lawsuit was the SEC's contention that Ripple's XRP token was an unregistered security and that it should meet the criteria of an investment contract, one of the security definitions under the U.S. federal securities laws.

Also, the American watchdog alleged that Ripple had been conducting an unregistered securities offering by selling XRP to the public without registering the offering with the SEC as required by law.