thecryptobasic.com
Amid Ripple’s filing opposing the US regulator’s interim appeal move, Ripple has corrected the regulator’s claim that $XRP has no inherent value.
Ripple’s Chief Legal Officer Stuart Alderoty recently encouraged $XRP enthusiasts to view the recent action against the US regulator. In particular, he referenced a section where Ripple countered the Securities and Exchange Commission (SEC)’s claim that $XRP has no intrinsic value.
Pro-$XRP attorney Bill Morgan shared parts of the content of Ripple’s reply with the $XRP community.
My favorite too. I have being banging on about the SEC comment that $XRP has no inherent value all week. Glad the Ripple attorneys addressed it. No such finding by the judge, not relevant to the Howey test anyway, and irrelevant to whether $XRP use gives it value, which it does. https://t.co/tAOuYPspfp pic.twitter.com/Yz7EVpj5oX
— bill morgan (@Belisarius2020) September 2, 2023
Ripple Counters SEC’s Claim
Recall that the regulator argued that $XRP was merely a computer code in its motion seeking interlocutory appeal. The SEC claimed it was not seeking permission to appeal that $XRP was a software code with no intrinsic value.
Meanwhile, in the reply filing, Ripple argued the SEC was greatly mistaken. Ripple reaffirmed that the US court did not rule that $XRP has no inherent value.
“The Court made no such ruling,” Ripple legal team proclaimed.
Moreover, the payment firm went on to clarify that $XRP is a bridge virtual asset for facilitating intercontinental transactions. The team highlighted the court’s exact wording that $XRP is a digital asset that does not satisfy Howey’s requirements.
The document read in part:
“… the Court found that an $XRP token is not, in itself, an investment contract because it does not, in itself, meet Howey’s requirements.”
Ripple’s Intent for Counter Appeal
Notably, Ripple proclaimed its intention for cross-appeals in the recent filing against the SEC.
In particular, Ripple stated that if the SEC’s bid for interim appeal is approved, it will simultaneously take steps to file cross-appeals. Among the rulings Ripple intends to review is the judgment related to institutional sales of $XRP.
Specifically, the blockchain fintech company will appeal the decision classifying $XRP as an investment contract in the context of institutional sales.
Also, Ripple has stated its commitment to defending efforts by the SEC to classify post-lawsuit sales of $XRP to ODL customers.