The legal tussle between the Securities and Exchange Commission (SEC) and Ripple Labs is far from over. The SEC has officially lodged an appeal against the court’s decision dated August 7. This development signifies another chapter in what has become a prolonged and contentious legal battle. While the SEC has submitted its notice of appeal, they still have time to provide a comprehensive briefing. However, Ripple’s leadership remains steadfast, expressing confidence in their legal standing.
SEC Appeals Ripple Case Decision
The SEC has formally filed its appeal regarding the Ripple case, registering it with the United States Court of Appeals for the Second Circuit. This move follows Judge Analisa Torres’ ruling, which asserted that not all sales of XRP qualify as securities. Additionally, the court imposed a civil fine of $125 million on Ripple for the institutional sale of XRP tokens. Attorney James K. Filan confirmed the filing and shared screenshots of the appeal, now docketed under case number 24-2648. This appeal rekindles the legal battle, placing it back into the public eye.
Ripple’s Legal Team Responds
Stuart Alderoty, Ripple’s Chief Legal Officer, was not caught off guard by the SEC’s decision to appeal. He described the move as disappointing but not unexpected. According to Alderoty, the court had already dismissed the SEC’s accusations of reckless conduct by Ripple. Moreover, there were no fraud allegations, and no financial harm had been incurred by investors. Alderoty hinted at the possibility of Ripple filing a cross-appeal, signaling the company’s readiness to face the evolving legal landscape.
Ripple’s CEO Speaks Out
Ripple CEO Brad Garlinghouse did not hold back his frustration in response to the SEC’s actions. Expressing his views on X (formerly known as Twitter), he criticized the SEC for perpetuating a case that, in his opinion, has not safeguarded investors. Instead, Garlinghouse argued, the SEC’s credibility has been compromised. He emphasized that Ripple, the broader cryptocurrency industry, and the rule of law have already emerged victorious in court. Garlinghouse remains resolute in his belief that XRP’s status as a non-security will remain unchanged, regardless of the SEC’s future maneuvers.
Internal Shake-ups in the Commission
A spokesperson for the SEC provided insight into the agency’s reasoning for appealing. They contend that the district court’s ruling contradicts established legal precedents set by the Supreme Court. The SEC is keen to present its case to the appellate court. Meanwhile, the SEC’s Enforcement Director, Surbir S. Grewal, has announced his resignation, effective October 11. This development has sparked speculation about potential internal disagreements related to the Ripple case.
