US SEC files appeal in Ripple case: XRP sees mixed market reaction

• SEC advanced its appeal in the Ripple lawsuit, potentially reshaping U.S. crypto regulation.
• XRP showed weekly gains despite a short-term dip amid ongoing legal uncertainties with the SEC.

Amidst the ongoing legal clash between Ripple [XRP] Labs and the U.S. Securities and Exchange Commission (SEC), the SEC moved forward in its appeal efforts.

On the 17th of October, the agency filed a ‘Civil Appeal Pre-Argument Statement’ (Form C), signaling its intent to challenge a previous court decision in the case.

This marks a significant development in the high-profile legal battle as the outcome of this appeal could reshape the boundaries of SEC authority over the crypto industry.

The story so far?

For those unaware, on the 2nd of October, the SEC took a significant step by filing a notice of appeal in the ongoing Ripple lawsuit, seeking to overturn a ruling by Judge Analisa Torres.

However, on the 16th of October, it was revealed that the SEC had missed the deadline to submit their Form C, sparking widespread speculation.

As expected, many in the crypto community are debating whether this delay signals a possible private settlement with Ripple or if it was the result of a mistake by Gary Gensler’s team.

When the SEC filed its lawsuit against Ripple and two of its executives in 2020, Ripple made it clear that this legal battle was not just about their company. Instead, they positioned it as a defense for the entire cryptocurrency industry.

This case, Ripple argued, signaled the SEC’s broader intention to target more entities within the space.

Now, nearly four years later, as the case advances to the Second Circuit Court of Appeals, its relevance only grows.

Hence, the outcome could set a crucial precedent, influencing how security laws are applied to token issuers, particularly within the key financial jurisdiction of the Southern District of New York.

Ripple’s CLO weighs in

Remarking on SEC’s action, Ripple Labs’ Chief Legal Officer, Stuart Alderoty took to X (formerly Twitter) and noted,  

“No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land. Stay tuned for Ripple’s Form C to be filed next week.”

In fact, following the SEC’s previous appeal, Alderoty voiced his disappointment earlier too when he stated, 

“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.” 

Impact on XRP’s price

Amid these legal developments, XRP appears to be facing some short-term challenges. The coin was trading at $0.5499, at press time,  reflecting a 0.99% dip over the last 24 hours as per CoinMarketCap.

However, despite this slight decline, the broader outlook for the token remains positive, with XRP showing a 2.56% increase over the past week.

This upward trend in weekly performance suggested that despite the ongoing regulatory hurdles, investors’ confidence in XRP’s long-term potential may still be holding strong.