American blockchain company, Ripple Labs, has submitted Form C for cross-appeal in the long-running court case with the Securities and Exchange Commission. The document, filed with the U.S. Court of Appeals for the Second Circuit, detailed the portion of the ruling it wishes to challenge. According to the form, Ripple targets four aspects of the previous court rulings.
First, the company questions the “essential ingredients” of an investment contract, asking whether a formal legal contract that binds the seller to post-sale obligations is necessary. Ripple seeks clarity on this ruling as it is important for the crypto sector and will help clarify how cryptocurrencies are classified. Notably, even if they win this argument, the $125 million civil penalty still stands.
Secondly, Ripple challenges the ruling that declared its XRP institutional sales as investment contracts. Ripple asked if the district court made a mistake in concluding that some of its XRP transfers met the Howey Test requirement for an investment contract. A clarity on this matter could change how similar sales are regulated.
Thirdly, Ripple challenged the SEC’s vague guidelines, citing its “Fair Notice” defense. The California-based blockchain company argued that they shouldn’t be punished for the lack of regulatory clarity by the SEC.
Lastly, Ripple asked the court for clarity on the injunction imposed that barred them from further breaking the law. They contend that the instruction is vague and creates uncertainty for the company.
