Ripple has filed a cross-appeal to the ongoing case against the U.S Securities and Exchange Commission (SEC). The company intends to make sure that all legal issues in the case are captured. This action came after the SEC issued a notice of appeal early this month.
The cross-appeal was filed by Ripple Labs and its CEO Brad Garlinghouse and the Executive Chairman, Christine Larsen. The U.S. SEC’s appeal challenges a ruling made by Judge Analisa Torres in August, which determined that Ripple’s XRP token in secondary markets were not securities.
Ripple Challenges Key Points in SEC Appeal
In December 2020, the US Security and Exchange Commission filed a lawsuit against Ripple for selling unregistered securities. Since then, the case has become central in the cryptocurrency niche. In August 2023, Judge Torres ruled that the offering of XRP sales by Ripple to other markets did not violate the U.S. securities laws. However, Ripple was found liable to pay a $125 million civil penalty for sales to institutional customers. This was significantly more than the $10 million Ripple suggested but much less than $2 billion as proposed by the SEC.
The SEC lost on all key points—that’s why they appealed. Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an "investment contract" without there being essential rights and obligations found in a contract.
— Stuart Alderoty (@s_alderoty) October 10, 2024
Ripple for its part decided to file a cross appeal after the SEC filed a notice of appeal in October. Ripple’s Chief Legal Officer, Stuart Alderoty said that cross appeal will help so that no pertinent issues are missed again, especially the definition of an ‘investment contract’. Ripple remains to disapprove of the SEC’s appeal and continues to fight the commission on their claim of XRP as a securities offering.
XRP Faces Price Fluctuations in the Market Amid SEC LawsuitRipple Claims SEC’s Appeal is Weak
The SEC’s appeal focuses on the ruling that XRP does not qualify as a security under the Howey Test, a key standard in U.S. securities law. Ripple believes the SEC’s case is weak. Alderoty stressed that the SEC has already lost the chance to appeal the decision on XRP sales in secondary markets. The SEC has not yet identified which of the aspects of the August ruling it would want to appeal. Ripple, however, intends to address any remaining legal concerns to protect its position.
The cross-appeal is at a crucial time for Ripple. The XRP has posted a small gain with it currently priced at $0.5338; a 1.14% hike in the last one day. The market capitalization of Ripple was $30.23 billion, and the 24 hours trading volume was $1.29 billion that depicts an increase of 52.73%.
