In a significant development within the ongoing legal saga, Ripple has initiated a “cross-appeal” on October 10, 2024. This move comes in response to the United States Securities and Exchange Commission’s (SEC) recent appeal earlier this month. The consolidation of both Ripple’s and the SEC’s appeals into a single case marks a pivotal moment in this high-stakes legal confrontation.
Ripple Challenges Court’s Decision
Ripple’s cross-appeal specifically targets the court’s earlier ruling that the sale of XRP to investors did not breach any securities laws. This legal maneuver is also a reaction to the court’s directive that Ripple must pay a $125 million penalty for the sale of XRP to investors. Although this fine is considerably less than the SEC’s initial demand of $2 billion, it remains substantially higher than Ripple’s proposed settlement of $10 million.
Can Ripple Win Against the SEC?
Amid these unfolding events, Ripple’s Chief Legal Officer, Stuart Alderoty, took to X (formerly Twitter) to express his thoughts, a message that resonated widely within the crypto community. Alderoty highlighted that the SEC lost on all critical points, which could be a driving factor behind its latest appeal. Ripple’s cross-appeal aims to comprehensively address every possible issue in its legal battle with the SEC.
Alderoty anticipates that the SEC might argue that XRP sales on exchanges and distributions to employees and developers constitute securities. Despite this, he remains optimistic based on the previous court ruling. He is confident that Ripple will prevail once again and hopes the court will dismiss the SEC’s recent attempts, particularly those spearheaded by SEC Chair Gary Gensler.
CEO Brad Garlinghouse’s Take
Ripple CEO Brad Garlinghouse has been vocal about the SEC’s actions, asserting that the agency is more focused on creating confusion rather than establishing clear guidelines for the cryptocurrency industry. He stated, “With our cross-appeal today, we’re looking forward to sealing the SEC’s fate and finally putting an end to the SEC’s regulation-by-enforcement agenda.” Garlinghouse’s comments underscore Ripple’s determination to challenge what they perceive as the SEC’s overreach and lack of clarity in regulatory practices.
As this legal battle continues to unfold, both Ripple and the SEC are preparing for a courtroom showdown that could have profound implications for the future of cryptocurrency regulation. The outcome of this consolidated appeal will not only impact Ripple and its stakeholders but could also set a precedent for how digital assets are regulated in the United States. As the legal drama intensifies, the crypto world watches closely, aware that the ramifications of this case extend far beyond the parties directly involved.
