Ripple files notice of cross-appeal in SEC lawsuit

Key Takeaways

  • Ripple Labs has filed a cross-appeal with the US Court of Appeals.
  • The legal action could impact the regulatory framework for digital assets in the US.

Ripple Labs has filed a notice of cross-appeal in its ongoing legal battle with the US Securities and Exchange Commission (SEC). The filing, submitted to the United States Court of Appeals for the Second Circuit, is Ripple’s bid to challenge certain aspects of the Aug. 8 final judgment.

The court ruling in August ordered Ripple to pay a $125 million civil penalty to resolve charges over the institutional sales of XRP tokens. The fine, although higher than Ripple’s proposed $10 million, is substantially less than the nearly $2 billion initially sought by the SEC, which included extensive disgorgement and prejudgment interest. The court also determined that XRP tokens sold on secondary markets were not securities.

Ripple’s cross-appeal follows the SEC’s appeal of its lawsuit against Ripple earlier this month. The SEC is looking to challenge Judge Analisa Torres’ ruling that programmatic sales of XRP to retail investors did not violate securities laws

Following the SEC’s move, Ripple Chief Legal Officer Stuart Alderoty said the company considered filing a cross-appeal to continue their fight.

As previously reported, both appeals would be merged into a single case before the Court of Appeals.

Source: https://cryptobriefing.com/ripple-sec-appeal-case-2/