Ripple Files Cross-Appeal in SEC Case: What You Need to Know
Ripple Labs has announced its intention to file a cross-appeal in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The decision comes after the SEC filed its own appeal in the case earlier this month, following a key ruling that favored Ripple in July 2023.
Why is Ripple Filing a Cross-Appeal?
The cross-appeal is part of Ripple’s strategy to defend its legal position as the case moves through the appeals process. Stuart Alderoty, Ripple’s Chief Legal Officer, explained that the company wants to ensure it “leaves nothing on the table” in terms of legal arguments. Ripple’s appeal aims to preserve its rights, particularly regarding the SEC’s claims that XRP sales violated federal securities laws.
“We’re doing this to protect our defense, including the argument that there cannot be an investment contract without the essential rights and obligations in a contract,” said Alderoty.
The Initial SEC Lawsuit
The SEC first filed a lawsuit against Ripple in December 2020, alleging that Ripple’s sales of XRP, its native token, were unregistered securities transactions. However, District Judge Analisa Torres ruled in July 2023 that Ripple’s programmatic sales of XRP to retail customers via exchanges did not violate federal securities laws, stating that XRP is not classified as a security.
While this was a major victory for Ripple, the case is far from over. The SEC has since filed a notice of appeal, and now Ripple is countering with its cross-appeal.
What Happens Next?
Both the SEC and Ripple are expected to file more comprehensive arguments in the coming months. For now, both parties have submitted basic notices of their intent to appeal, but the real battle will begin when they file their full briefs.
The SEC’s opening brief is expected around January, while Ripple’s response—combined with its opposition to the SEC’s claims—will likely follow shortly after. This appeal process could last for months, if not years, as both sides argue their case in higher courts.
Clarity in Crypto Regulation
Ripple’s legal team is optimistic that the appeals court will confirm Judge Torres’ initial ruling. Alderoty expressed confidence, stating, “I think the judge got it right, and I think the appeals court will bring the clarity that the industry needs.”
Despite the ongoing litigation, Alderoty emphasized that the U.S. desperately needs a clear policy framework for cryptocurrencies. Without clear regulations from lawmakers, Ripple and other companies are forced to rely on court rulings to define the legal boundaries for digital assets like XRP.
Until Congress provides definitive crypto regulations, Ripple appears ready to continue its legal fight. “We’re willing to continue to fight and bring clarity to the industry through the litigation process,” Alderoty added.
Final Thoughts
The Ripple-SEC case remains one of the most closely watched legal battles in the cryptocurrency world. With both sides now preparing for the next phase in the appeals process, the outcome could have lasting implications for how digital assets are regulated in the U.S. and globally.
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