The Securities and Exchange Commission (SEC) has filed its appeal against Ripple despite submitting it 24 hours after the original deadline. The SEC’s appeal focuses on specific aspects of the lawsuit, which will continue the lengthy legal battle over the sale of XRP tokens. After missing the October 16 deadline, the filing’s timing has sparked confusion, as some observers believed the SEC had forfeited its chance to appeal.
Also Read: SEC Submits Form C in Ripple Case, Targets XRP Programmatic Sales
Focus of the SEC Appeal
The SEC’s appeal does not challenge the court’s ruling that XRP is not a security, nor does it contest the $125 million fine imposed on Ripple. However, the appeal emphasizes Ripple’s sales of XRP on trading platforms of digital assets, both in cash and in kind. Also, the SEC continues to bring charges that Brad Garlinghouse and Chris Larsen, two executives of Ripple, spurred the said sales. The agency is also challenging Ripple’s offers and sales of XRP by the executives and its distribution of XRP to employees, which will be central to the ongoing dispute.
Ripple’s chief legal officer, Stuart Alderoty, pointed out that expecting the SEC to challenge XRP classification as non-security would be unwise. Alderoty pointed out that the court’s remarks about XRP’s status were in dicta and, therefore, not appealable, a fact Ripple had anticipated.
Ongoing Confusion and Uncertainty
The uncertainty surrounding the SEC’s appeal grew when the filing reflected two contradicting dates, October 16 and October 17, sparking suspicion about a possible docketing delay. While some claimed that the deadline had been extended to October 18, experts stressed that the initial deadline was October 16. Despite the delay in filing, the court approved the SEC’s appeal, prolonging the legal process.
The SEC’s lawsuit against Ripple has weakened over time, particularly as the agency admitted in separate cases that not all crypto tokens are securities. This admission may have broader consequences for future regulatory enforcement against digital asset companies as the SEC strategy has become more questioned.
Conclusion
The SEC’s appeal against Ripple may prolong the legal battle for another year, leaving the outcome uncertain. The case is being closely watched, as its resolution will likely shape the future of digital asset regulation in the United States.
Also Read: Ripple and SEC Prepare for Lengthy Appeal Process Expected to Extend into 2026
