Ripple has opposed the SEC’s proposal for an appeal following its previous victory. Concurrently, the XRP token has kicked off a new month with positive on-chain signals.
In documents filed on September 1st, the fintech company stated that the SEC had failed to establish the necessary exceptional circumstances for the court to approve their temporary restraining order appeal.
RIPPLE’S OBJECTION
Ripple argued that the SEC did not meet the three necessary conditions to warrant the certification of a temporary restraining order appeal. The first condition requires that the injunction must pertain to a purely legal issue or be controlling in nature. However, Ripple contended that the SEC did not meet this standard.
It noted that the court’s order in the SEC’s lawsuit against Ripple was fact-based, and the court only applied law to past events. Therefore, the SEC tried to strip facts from the ruling, making their bid for appeal misguided. Ripple mentioned that they will rely on similar reasoning in the Second Circuit court.
The court did not rule that sales and trading on cryptocurrency asset platforms can never lead to investment contracts. It found that the defendant’s programmatic sales were not sales of investment contracts based on the facts of this case.
Regarding the SEC’s argument that the decision in this case could impact other pending litigations, Ripple also disagreed. It noted that the SEC’s other enforcement actions have different factual perspectives and procedures. Thus, the SEC is required to meet the Howey test in those cases.
Meanwhile, Ripple refuted other SEC claims, such as the basis for difference in views and whether an immediate appeal would expedite the case.
XRP PRICE STRUGGLES PERSIST
Following Ripple’s objection to the SEC’s appeal, XRP’s on-chain activity has improved. The cryptocurrency started the month with a significant spike in utility as on-chain transaction volume reached 4.8 billion XRP. This is the highest volume since February 1st. Blockchain analytics firm Santiment reported that XRP’s on-chain circulation reached a 3-month high at 2.03 billion XRP.
However, its price continues to face challenges. XRP declined by 2.2% in the past 24 hours and was trading at $0.495 USD at the time of writing. It has lost all the gains it achieved from a partial victory a few weeks ago.