The U.S. Securities and Exchange Commission (SEC) has chosen to appeal the ruling against Ripple Labs, potentially prolonging the legal battle until 2026. Ripple’s Chief Legal Officer Stuart Alderoty expressed disappointment with the decision, calling it a continuation of “litigation warfare” by the agency. Alderoty noted that the court had previously dismissed claims that Ripple acted recklessly and highlighted that there were no allegations of fraud, victims, or losses associated with the case.
Ripple CEO Brad Garlinghouse also criticized the SEC’s decision, saying it has undermined the agency’s reputation. Garlinghouse emphasized that, notwithstanding the SEC’s appeal, XRP’s position as a non-security remained unchanged. He pointed out that the SEC had previously failed to file an interlocutory appeal, calling into doubt the case’s strength.
Also Read: SEC Expected to Appeal Ripple Ruling as Deadline Approaches
Ripple to Consider Cross-Appeal as Legal Process Extends
The legal fight is ongoing, and Ripple is considering a cross-appeal strategy. Appellate lawyer Fred Rispoli has prepared a timeline of the appeals, which indicates that the Second Circuit Court of Appeal might have its ruling in early 2026. The SEC’s opening brief is expected by January 2025, and Ripple’s brief will likely follow shortly after. Court hearings could occur by late 2025, with a final decision expected around March or April 2026.
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This extended time may put Ripple and the rest of the crypto market in legal uncertainty for several years. Nonetheless, Ripple sticks to its guns regarding this matter, believing the court’s previous rulings will be the final word.
🚨BREAKING🚨
SEC has filed a notice of appeal to the Court of Appeals for the Judge Torres XRP Ruling.
The saga continues. #cryptonewstoday #Ripple #SEC #RippleVsSEC pic.twitter.com/cCVylJtbIw
— 36crypto News – Blockchain Life Oct 22-23 (@36Crypto2) October 3, 2024
What it Means for XRP
For XRP holders and the broader cryptocurrency community, the SEC’s decision to appeal prolongs the uncertainty surrounding Ripple. However, Ripple’s leadership remains steadfast that XRP’s status as a non-security will not be overturned. The appeal process, while lengthy, is unlikely to change the current legal standing of XRP.
The outcome, expected in 2026, will be crucial for Ripple and the broader regulatory landscape of digital assets. Ripple’s continued legal fight is viewed by many as a critical moment for the future of cryptocurrency regulation.
Meanwhile, the price of XRP tanked significantly following the appeal decision. According to on-chain data, XRP crashed by over 13% after managing to trade as high as $0.60 earlier today. At the time of writing, XRP was changing hands at $0.5192
Also Read: Ripple and Kraken Achieve Legal Milestone as Court Rejects SEC’s Crypto Asset Security Theory
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.