Key Points:
- Ripple plans a cross-appeal in its ongoing case against the U.S. SEC.
- The SEC filed its own appeal earlier in October 2024.
- Ripple’s cross-appeal aims to preserve key arguments from Judge Torres’ 2023 ruling.
- Legal briefs from both parties are expected in early 2024.
Ripple Prepares Cross-Appeal in SEC Case to Safeguard Legal Position
⚡️⚡️ @Ripple files a cross-appeal against the US SEC, saying the Commission "lost on all key points." $XRP pic.twitter.com/j9lDKXzxPN
— CryptoPotato Official (@Crypto_Potato) October 11, 2024
Ripple Labs announced its plan to file a cross-appeal in the ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The company’s move follows the SEC’s notice of appeal filed earlier this month. Ripple’s Chief Legal Officer, Stuart Alderoty, stated that this cross-appeal is a precautionary measure aimed at preserving the company’s key legal defenses as the case progresses through the appeals court.
The SEC originally filed its lawsuit against Ripple in December 2020, alleging that the company’s sale of its XRP token violated federal securities laws. However, in a significant ruling in July 2023, District Judge Analisa Torres found that Ripple’s programmatic sales of XRP did not constitute a securities violation. According to her ruling, XRP itself was not classified as a security.
Ripple’s Focus on Legal Arguments
Ripple’s cross-appeal is intended to solidify its position, especially concerning the argument that an investment contract cannot exist without specific contractual rights and obligations. Although Alderoty refrained from discussing the specifics of Ripple’s legal strategy, he emphasized the importance of leaving no legal avenue unexplored as the case moves forward.
The cross-appeal is largely procedural at this stage, with both Ripple and the SEC expected to submit detailed briefs early next year. Ripple’s brief, which will also address the SEC’s arguments, is likely to follow shortly after the regulator’s filing, which could come by the end of January 2024.
Future of the Ripple vs. SEC Case
Despite the ongoing legal dispute, Alderoty expressed confidence in Judge Torres’ 2023 ruling and welcomed the upcoming review by the appeals court, which he believes will bring much-needed clarity to the legal status of XRP and the broader crypto industry. However, he also stressed the need for comprehensive legislative solutions from U.S. lawmakers to provide clear guidance on digital assets.
Ripple remains committed to fighting through the courts, collecting victories, and ensuring legal clarity for the cryptocurrency industry as it continues to navigate the complexities of regulatory challenges.
Ripple’s decision to file a cross-appeal underscores the company’s commitment to preserving its legal victories while continuing to challenge the SEC’s claims. As both parties prepare for the next phase in court, the case remains a pivotal moment for the future of cryptocurrency regulation in the U.S.
