Ripple Labs has taken a firm stance against the SEC, emphasizing its position on the XRP cryptocurrency case.

Recent court documents shed light on the intensifying dispute between Ripple Labs and the SEC. In a move to counter the SEC’s recent appeal against a July 13 decision by Judge Analisa Torres, Ripple Labs, through a letter dated Aug 16, has filed an opposing motion. The company’s legal team contends that the SEC has not adequately justified its case based on the Howey test criteria.

The defense is urging the court to dismiss the SEC’s request for an appeal pause. They believe it would be more judicious for the SEC to wait for the final comprehensive verdict rather than appealing their partial setback.

Reasons for the Counter

Ripple Labs’ legal representation highlighted three main arguments in their submission. Firstly, they emphasized that an appeal should strictly address a clear legal question, which the SEC’s motion lacks.

Next, they countered the SEC’s claim that the court made an error in its judgment, deeming such a claim as lacking substance. Lastly, they pointed out that an immediate appeal would not expedite the conclusion of the current litigation.

Is the SEC Overstepping?

The SEC’s approach has raised eyebrows among crypto enthusiasts and firms, with many feeling the regulator is overextending its authority. Ripple Labs voiced its concerns about the SEC’s seemingly inconsistent or preferential enforcement actions.

The company’s letter stated, “The SEC’s strategy, which has spanned several years, appears to be regulation through enforcement. This method capitalizes on regulatory ambiguity, addressing digital asset sales individually without offering clear guidance or initiating rule-making. This tactic has led to a fluctuating litigation strategy, where the SEC seems to shift its stance based more on convenience than genuine belief.”