As the SEC Delays Resolution in Ripple Case, Good Times on the Way for Aussie XRP Holders

Despite Gary Gensler, the chair of the United States Securities and Exchange Commission (SEC), going on record saying that the rules are clear for crypto in the U.S., the current legal battles suggest otherwise. While the case of the SEC vs. Ripple Labs, is awaiting a date for a jury trial in Q.2 of 2024 regarding the involvement of CEO Brad Garlinghouse and Chairman and co-founder Chris Larsen, there has been yet another twist in the ongoing saga.

Late last week, the SEC filed a reply to Ripple’s reply to the agency’s motion for an interlocutory appeal. Following the partial win in July where Judge Torres declared that XRP in itself is not a security, the SEC filed for a motion to certify an interlocutory appeal.

If granted, the motion to appeal would suspend the jury trial until the SEC’s appeal is decided. The SEC is not challenging the security status of XRP, describing it as computer code with no underlying value. With the interlocutory appeal, the agency aims to question the court’s decision about some XRP sales by Ripple, as well as other direct sales to institutional investors which it claims violated securities laws.

Lawyers Chime in

Stuart Alderoty, Ripple’s Chief Legal Officer responded to the filing with a post, saying: “Another SEC filing, another hypocritical pivot… After years of its chairman saying the ‘rules are clear and must be obeyed’ the SEC now cries that an appeal is urgently needed to resolve these ‘knotty legal problems.’”

The SEC had accused Ripple in its filing of attempting to delay and prolong the legal dispute. It said: “The SEC, as plaintiff, has an institutional interest in the efficient resolution of this case. Defendants do not. They seek to prolong this litigation […] presumably so that they may continue selling XRP.”

John E. Deaton, a well-known lawyer himself, called the SEC’s statement embarrassing for the agency. After all, the SEC is the one asking for an appeal, and an appeal would further extend the process. Hinting at the possibility of a further appeal by the SEC after a trial, Deaton said: “Then after the trial, there would be the usual appeal on all issues. Hence, the SEC’s claim that it wants faster adjudication than Ripple does, might be the dumbest argument I’ve heard yet. It flies in the face of its request for an early appeal, while asking for a stay!”

XRP Gold Coast Event

Deaton who represents 75,000 XRP holders as amicus in the lawsuit, said that Australia is now number three on the list of XRP holders. Deaton explained in a post: “I checked the 75K XRP Holder list. Australia has moved to the number 3 spot. About 53% of the 75K XRP Holders are from the United States. The United Kingdom comes in at 2. After that, Australia has a very small lead (ie like 11 people) over Canada, as the 3rd most represented country. I could not say no, nor pass on the opportunity to meet many of them.”

With that, he referred to the 2024 XRP community event which will be held March 22-24 on the Gold Coast. The event, called ‘XRP Gold Coast 2024’ will be held at RACV Royal Pines Resort and Deaton will be a keynote speaker. Meanwhile, the price of XRP has dipped by over 4 percent in 24 hours, currently trading at $0.73 (US$0.47) according to CoinMarketCap.