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- Greg Beuke argued that the SEC failed to understand that it did not provide enough evidence to prove that XRP is a security.
- While the SEC wants its motion for an appeal approved, Ripple wants both the appeal and case to continue in parallel.
The SEC vs Ripple case could take a different turn if the court approves several motions already presented by both parties. On one hand, the United States Securities and Exchange Commission (SEC) filed a motion to certify an interlocutory appeal for the summary judgment issued by District Judge Analisa Torres on July 13. On the other hand, Ripple and its executives have argued that the ongoing case should not be stopped for the appeal to take place, instead both should take place concurrently.
“…But there is an exception for unusual cases, and the SEC is arguing that this is one of those unusual cases where an exception should be made and the regular proceedings should stop until the appeal is complete. Ripple is arguing there should be no exception made, and Brad and Chris are arguing that even if the court grants the SEC the right to appeal, the case should continue and the appeal should run in parallel,” Ripple CTO David Schwartz recently explained.
Legal Expert Explains Why SEC Made a Huge Blunder for Filing Interlocutory Appeal
According to a crypto enthusiast and immigration lawyer, Greg Beuke, the United States Securities and Exchange Commission made a huge blunder in filing an interlocutory appeal, whether the motion is granted or not. Beuke argued that the SEC failed to understand that the historical ruling last month did not rule that sales over crypto exchanges cannot be investment contracts. Instead, the SEC’s legal team should have provided the court with enough evidence to support its arguments that XRP sales on exchanges constituted investment contracts.
The SEC didn't produce evidence of a single XRP holder who said he was relying on Ripple to increase the price of XRP. It tried to use expert testimony, but that testimony was excluded. The SEC didn't try to rebut @JohnEDeaton1's affidavits from #XRPCommunity. /3
— Greg Beuke 388 Followers Beware of Imposters (@GregBeukeAttyKS) August 19, 2023
As a result, Beuke argued that the SEC has made a huge blunder since the agency will have a chance to get a clarification from Judge Torres on her ruling. Moreover, the SEC cannot provide new evidence during the appeal hearing and no new legal arguments can be made during the process.
Consequently, Beuke concluded that the SEC is stuck with the record, and will have scant evidence to point to, if the appeal motion is approved, about reasonable retail purchasers.
The SEC wants the court to rule that XRP sales on centralized exchanges constituted investment contracts based on expert evidence. However, the SEC failed to reply to John Deaton’s affidavit that represents over 70k XRP holders, who argued that they did not expect any investment returns from Ripple’s XRPL developments.
Meanwhile, the Ripple and XRP community have complained that the case has reduced the XRPL growth in the past two years. Moreover, more DeFi developers have ostensibly opted in for other blockchains like Ethereum that were not directly involved with the SEC regulatory scrutiny.
