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.
