Ripple Execs Mock SEC as Court Upheld the First Ruling in Favor of XRP

The CEO of Ripple, Brad Garlinghouse, has called out the United States Securities and Exchange Commission (SEC) on its recent defeat.

Notably, a US district judge has upheld the initial ruling in favor of Ripple on its lawsuit with the SEC. Based on this development, Ripple CEO maintains that court declaration about XRP as a non-security remains the law of the land."

Court Denies The SEC's Interlocutory Appeal, Ripple CEO Mocks the Regulator

On Tuesday, October 3, Judge Analisa Torres denied the SEC's interlocutory appeal regarding the court's ruling in July. The court has declared Ripple's secondary XRP sales and transactions as non-securities.

According to the ruling, the securities regulator lacks strong arguments that should compel the court to revoke its initial decision.

Further, the court noted discrepancies in the SEC's motions throughout the case. Following the flow in the trend of its argument, the court ordered the SEC to wait for the conclusion of all pending matters in the lawsuit.

It noted that the regular could appeal any of the court's declarations after conclusion.

The CEO of Ripple has mocked the SEC while commenting on the latest court decision. Garlinghouse was seen with an XRP tattoo and the date of the court's ruling in July.

The SEC's request to file an interlocutory appeal is DENIED. I'm not a lawyer but it seems the Court just told the SEC: You asked me to apply the Howey" test, I did, and like it or not, you lost. https://t.co/0E4MS0iuRY pic.twitter.com/bkhCpum17n

- Brad Garlinghouse (@bgarlinghouse) October 4, 2023

Garlinghouse mentioned that the court's dismissal of the SEC's interlocutory appeal is a defect to the regulator on its game.

Garlinghouse stated: The SEC's request to file an interlocutory appeal is DENIED. I'm not a lawyer, but the court just told the SEC: You asked me to apply the Howey' test. I did, and like it or not, you lost.

Also, Stuart Alderoty, Ripple's Chief legal officer (CLO), reacted to the recent court rejection of the SEC interlocutory appeal. He mentioned that the court's decision on July 13 remains a win for XRP, confirming its status as non-security.

The Court's July 13 ruling was, and remains, the law of the land. XRP is not a security. https://t.co/NxOXZZtSMG

- Stuart Alderoty (@s_alderoty) October 3, 2023

SEC's Arguments Are Baseless, Says Court

The recent court ruling indicated that the SEC's arguments in its case against the blockchain company Ripple need more substance.

According to the SEC, the programmatic sales of XRP could propel investors to anticipate some gains through Ripple's efforts. Also, the agency debated that Ripple's other distributions of its native token are equivalent to an investment of money' by recipients.

But Judge Torres diffused the SEC's arguments on the case. In the court's latest ruling, she mentioned that the agency gave no substantial facts that could revoke the initial decision in July.

Moreover, the judge maintained that such issues have no questionable dents on the law that could prompt quick decisions without extensive reviews of available evidence and records.

With the court's rejection, the SEC will have to wait for the court to conclude all matters in its lawsuit against Ripple before its appeal.

Following the latest court ruling, XRP's price surged nearly 5% over the past day. According to CoinMarketCap data, XRP emerged as today's top gainer, trading at $0.5337 as of 07:40 AM EST on October 4.

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