In a surprising move, Ripple CEO Brad Garlinghouse and executive director Chris Larsen have intensified the ongoing legal battle with the Securities and Exchange Commission (SEC) by filing a strong opposition to the regulator's request for an interlocutory appeal.
The executives' opposition, filed on behalf of themselves, counters the SEC's push for an appeal, arguing that the regulatory agency lacks the grounds to demonstrate exceptional circumstances warranting such a move.
Garlinghouse and Larsen maintain that the SEC's chances of success on the appeal's merits are slim, underscoring the July 13 ruling that XRP is not a security. They stand firm that the SEC's claims of recklessness on their part are baseless and that the trial will prove their position.
Stuart Alderoty, Ripple's chief legal officer, took to Twitter to express the company's stance, emphasizing that they oppose the SEC's request for an interlocutory appeal, as no extraordinary circumstances exist to depart from the rule requiring resolution of all issues before an appeal.
Brad Garlinghouse himself chimed in, reminding the public that the debate over XRP's classification as a security is not up for trial, and that the recent ruling supports their position. He expressed confidence in their ability to disprove the SEC's allegations in court.
The Judge’s July 13 ruling said that the SEC would be put to their proofs at trial regarding their claim against Chris and me. We look forward to proving the SEC wrong as a matter of fact and law (again). 2/2 https://t.co/qvS34XZbVJ— Brad Garlinghouse (@bgarlinghouse) August 16, 2023
Importantly, the opposition highlights the potential for irreparable harm to the reputations of Ripple bosses and calls into question the SEC's motives for pursuing this course of action. The executives emphasize that the commission's strategy of regulatory uncertainty has hindered the digital asset industry's growth and innovation.