Ripple Pulls No Punches, Counters SEC Ruling With Cross-Appeal
Ripple has filed a cross-appeal notice in the U.S. District Court of New York to challenge the court’s final judgment from August 7, 2024. This move comes shortly after the SEC officially appealed the Ripple decision.
Ripple Cross Appeal
In the judgment, the court found that Ripple violated securities laws through its institutional sales of XRP but ruled that the company’s programmatic sales and other token distributions are not investment contracts. Ripple was ordered to pay a $125 million fine for the securities law violation and was prohibited from conducting future institutional sales without SEC approval.
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Ripple’s cross-appeal focuses on challenging the court’s verdict on its XRP-related institutional sales. The company aims to overturn this decision in the U.S. Court of Appeals. Both Ripple and the SEC are seeking an appellate review of the verdict, with the appeals expected to be consolidated into a single case in the Second Circuit.
Ripple’s Chief Legal Officer, Stuart Alderoty, has hinted at the company’s focus in the upcoming appeal. He stated that Ripple is cross-appealing to ensure that all aspects of the case are thoroughly reviewed. The appeal will centre on the argument that an investment contract cannot exist without a contractual agreement outlining the rights and obligations between the parties, particularly in relation to Ripple’s institutional sales of XRP.
Alderoty also provided insights into what can be expected from the SEC’s appeal brief. He mentioned that the SEC confirmed it would not appeal the ruling that XRP is not a security, but it may challenge the decision on Ripple’s programmatic XRP and other token distributions to employees and developers, which the court did not deem as investment contracts.
Ripple CEO Stance on SEC
Ripple CEO, Brad Garlinghouse, expressed frustration with the SEC’s actions, stating that the commission’s focus seems to be on creating chaos rather than providing clarity. Following the cross-appeal, Garlinghouse expressed hope that Ripple’s actions will bring an end to the SEC’s regulatory approach in the crypto industry.
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Kayode Michael is a seasoned cryptocurrency analyst, successful trader, and skilled writer with a strong command of cryptocurrency analysis and price action. He leverages his technical analysis skills to provide valuable insights into emerging market trends and potential opportunities for investors to make informed decisions.
