Ripple has officially filed a cross-appeal in its long-standing legal case against the U.S. Securities and Exchange Commission (SEC), marking another pivotal moment in the ongoing XRP lawsuit. The filing, submitted to the United States Court of Appeals for the Second Circuit, comes in response to the SEC’s appeal earlier this month, and it is Ripple’s attempt to challenge some of the regulator’s key legal claims.
Ripple Cross-Appeal Targets SEC’s Legal Tactics
Ripple’s chief legal officer, Stuart Alderoty, announced that the San Francisco-based blockchain company had lodged the cross-appeal to ensure that no critical legal arguments were left unresolved. One of the central points Ripple seeks to contest is the idea that an “investment contract” can exist without essential rights and obligations outlined in a formal contract. Alderoty pointed out that the SEC had previously stated it wouldn’t appeal the ruling that XRP is not a security, even apologizing for suggesting that a cryptocurrency could inherently be considered a security.
Despite this, Ripple remains wary of the SEC’s next move, with Alderoty highlighting that the agency is likely to target issues related to XRP sales on exchanges once again. He expressed confidence, stating that Ripple expects to prevail on these matters, just as they did previously.
“We look forward to the federal court of appeals finally putting an end to the SEC’s misguided attack on our industry,” Alderoty said, referring to SEC chair Gary Gensler’s stance on the crypto market.
Ripple’s Legal Victory and Future Strategy
Earlier this year, Ripple scored a major legal win when the court ruled that XRP tokens sold on secondary markets do not qualify as securities, a ruling that directly impacted the SEC’s enforcement efforts. Although Ripple was ordered to pay $125 million to settle charges related to unregistered institutional sales of XRP, this figure was a far cry from the $2 billion initially demanded by the SEC.
Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments on social media, expressing his frustration with the SEC’s approach. He criticized the agency for pursuing enforcement rather than providing clear regulations for the cryptocurrency industry. “We’re looking forward to sealing the SEC’s fate and finally putting an end to the SEC’s regulation-by-enforcement agenda,” Garlinghouse said.
As Ripple prepares for this next phase of its legal fight, the outcome of the appeal could have major implications for both Ripple and the wider cryptocurrency industry. Should Ripple succeed, it would solidify XRP’s non-security status and could set a legal precedent for other cryptocurrencies facing similar regulatory scrutiny.
With Ripple at the forefront of this legal battle, the company’s cross-appeal is a crucial step toward bringing regulatory clarity to the crypto industry, which has long been plagued by uncertain rules and aggressive enforcement actions