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Sujit Kumar
Oct 18, 2024
by Sujit Kumar

SEC Files Appeal in Ongoing Legal Battle with Ripple Labs

SEC Files Appeal
The U.S. Securities and Exchange Commission (SEC) has formally appealed a prior judgment in its long-standing case against Ripple Labs. This move comes after the SEC submitted a "Civil Appeal Pre-Argument Statement" (Form C) in an effort to challenge Judge Analisa Torres’ ruling regarding XRP, Ripple’s native cryptocurrency.

Clarification Sought on XRP's Classification

The central issue at hand is whether XRP sales on cryptocurrency exchanges should be classified as securities. The SEC's original lawsuit accused Ripple of violating the Securities Act of 1933 by selling XRP without proper registration. Now, the SEC seeks a “de novo” review, meaning the court would reevaluate the case with fresh scrutiny, focusing particularly on Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen.

Ripple’s Chief Legal Officer, Stuart Alderoty, responded to the SEC's filing, confirming that Ripple would file its Form C next week. He emphasized that the Court's decision that "XRP is not a security" remains intact and is not under appeal.

Ripple’s Cross-Appeal and Legal Developments

Following the SEC's appeal, Ripple also filed a cross-appeal, aiming to ensure all aspects of the case are comprehensively addressed. The legal battle between the SEC and Ripple dates back to 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. A key decision last year ruled that Ripple’s programmatic sales of XRP were not securities, while direct sales to institutional investors were deemed to violate securities laws.

As this case heads to the Second Circuit Court, the outcome could set a major precedent for how cryptocurrencies are regulated in the U.S.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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SEC Files Appeal in Ongoing Legal Battle with Ripple Labs
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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