Ripple Labs recently has delivered a counter to the U.S Securities and Exchange Commission (SEC) with regard to the latter’s intent for an interlocutory appeal over a summary judment. The said judgment had been established by Judge Analisa Torres of U.S. District Court on July 13. In a letter addressed to the judge on August 16, Ripple’s attorneys argue that due to the SEC’s inability to fulfill certain elements of the Howey test, which pertains to the distribution of XRP, the court should dismiss the SEC’s request for an appeal.
This appeal results when a trial court ruling is brought into dispute while other aspects of the case progress. Given that it is allowable under specified settings, Ripple’s lawyers believe it would be more apt for the SEC to contest the court’s ruling post a final judgment with a comprehensive record.
Expounding on the issue, Stuart Alderoty, Ripple’s chief Legal officer, mentioned the absence of an “extraordinary circumstance” which would call upon the Court to deviate from the typical legal procedure: “There is no extraordinary circumstance here that would justify departing from the rule requiring all issues as to all parties to be resolved before an appeal.”
On the other hand, Ripple had earlier achieved a partial triumph against the SEC regarding the securities status of its XRP token. Judge Torres had concluded that the XRP token was not a security per se, adding that the sales of the XRP tokens could still be securities under specific circumstances, for instance, when sold to institutional investors but not when they are sold on exchanges to retail traders.
In other news, the Canadian cryptocurrency exchange, Kraken, has benefited from the rigorous registration requirements, according to a statement by Mark Greenberg, the Managing Director for Canada at Kraken. While certain exchanges were unable to adhere to the new rules that necessitated registration as restricted dealers, set up by the Canadian Securities Administrators in February, other exchanges like Kraken restated their commitment to Canada, enhancing their user base and finding the balance for their cost of operations. However, whilst Kraken states regulatory clarity as a crucial benefit, challenges persist for on-ramps and off-ramps, with the major banks in Canada being relatively hostile to crypto.
In conclusion, these instances mark the sectors ongoing regulatory struggles with cryptocurrency establishments. While, on one hand, Ripple fights the SEC on securities’ regulations, on the other, Kraken works around the hostile banking environment, demonstrating the challenges and triumphs within the cryptocurrency and regulatory field.
Source: Cointelegraph
