Last updated on October 7th, 2024 at 10:33 am
The Securities and Exchange Commission (SEC) has officially filed its appeal against Ripple Labs, docketed under case number 24-2648, with the United States Court of Appeals for the Second Circuit. This appeal follows Judge Analisa Torres’ earlier ruling, which declared that not all Ripple’s XRP token sales are securities. Ripple was fined $125 million for institutional sales of XRP, though the court dismissed several of the SEC’s claims. The legal conflict, ongoing since 2020, has entered a new phase with filing the appeal.
Ripple’s Chief Legal Officer, Stuart Alderoty, swiftly responded to the SEC’s appeal, expressing disappointment but noting that the decision was not unexpected. He pointed out that the court dismissed the allegations that Ripple operated negligently, and there were no fraud charges or loss of money in the case. Alderoty also mentioned that Ripple may still proceed with Ripple’s cross-appeal, which confirmed the company’s willingness to proceed to court with the SEC whenever required.
Also Read: SEC Faces Scrutiny Over Missing Form in Ripple Lawsuit Appeal
Ripple Leadership Remains Defiant as SEC Appeals
The chief executive officer of Ripple also expressed his concern that Brad Garlinghouse took his time to condemn the SEC for extending the case, which has harmed the image of the agency rather than doing any good. Garlinghouse again amplified that Ripple, the entire crypto-space, and the application of law have triumphed in the unjust line. He continues reminding his audience that XRP is still a non-security according to the law, even in the face of the new appeal from the SEC.
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A spokesperson for the SEC defended the agency’s decision to appeal, arguing that the district court’s ruling contradicts decades of Supreme Court precedent. The SEC is eager to present its case before the appellate court in hopes of overturning the lower court’s decision.
Internal Shake-ups Raise Questions About Ripple Case
In a related development, SEC Enforcement Director Gurbir S. Grewal has announced his resignation, effective October 11, shortly after the appeal was filed. This has led to speculations on a possible internal rift at the SEC in dealing with the Ripple case after the official’s loss. The timing of his decision to resign has raised eyebrows about the stability of the agency as it wages war against Ripple.
Conclusion
As the SEC formally appeals the Ripple case, both parties prepare for a prolonged legal confrontation. Ripple remains confident in the previous court ruling, while the SEC seeks to overturn a decision that could have broader implications for the cryptocurrency industry. The internal shifts within the SEC add further intrigue to an already complex and high-stakes legal battle.
Also Read: Ripple Mints 42 Million RLUSD Ahead of Q4 2024 Launch
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.