- Ripple CLO confirms the SEC has not appealed the ruling that XRP is not a security.
- Ripple plans to file a cross-appeal against the ruling that institutional XRP sales are securities.
- The SEC is appealing other rulings but did not challenge XRP’s non-security status.
Ripple’s Chief Legal Officer, Stuart Alderoty, has confirmed that the SEC has not appealed the court’s ruling that XRP is not a security. This unchallenged decision remains a major victory for Ripple and XRP holders, as it ensures that XRP itself will not be subject to further scrutiny under securities law in the SEC’s ongoing case.
However, Ripple isn’t stopping there. Alderoty revealed that the company plans to file its own Form C next week, launching a cross-appeal against the court’s ruling on institutional sales of XRP. The court had previously determined that these sales constitute securities, leading to a $125 million fine imposed on Ripple in the final ruling delivered in August.
Ripple aims to contest this judgment, especially as the SEC has officially appealed several rulings that favored Ripple in the four-year-long case.
Details of SEC Appeal
The SEC submitted its Form C statement last Thursday to the U.S. Court of Appeals for the Second Circuit. In this filing, the SEC is challenging Judge Analisa Torres’s 2023 ruling, which determined that Ripple’s XRP sales on crypto exchanges do not qualify as investment contracts.
Additionally, the SEC is attempting to reinstate the previously dismissed aiding and abetting charges against Ripple’s Chairman, Chris Larsen, and CEO Brad Garlinghouse. The regulator is also contesting the court’s decision regarding Ripple’s use of XRP as a payment method.
While the SEC’s appeal contributed to Friday’s decline in XRP’s price, it’s important to note that the appeal does not directly challenge the ruling that XRP itself is not a security. This point is notably absent from the Form C filing.
Besides, the SEC referred to XRP as a “crypto asset” in the filing, marking a shift from its earlier label of “crypto asset security.”
Ripple’s Chief Legal Officer has reiterated that the ruling that XRP is not a security “stands as the law of the land,” offering reassurance to XRP investors that the potential for a bull run remains unaffected by the ongoing legal proceedings.
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