- Ripple has filed a cross-appeal of the court’s final judgment in its case against the SEC
- The SEC had previously filed its own notice of appeal in the Ripple case
- The specifics of the SEC’s appeal and Ripple’s cross-appeal will become known once they file their respective opening briefs
Ripple has fired back against the SEC by filing a cross-appeal of the court’s final judgment in the high-profile case. This latest move promises to extend the legal battle between the San Francisco-based blockchain company and the securities regulator.
Ripple’s $125 Million Fine
In August 2022, Judge Analisa Torres ordered Ripple to pay a $125 million fine as part of the resolution of the SEC lawsuit. The penalty relates to the company’s unregistered sales of XRP cryptocurrency over several years.
The SEC’s Appeal
Earlier in October 2022, the SEC filed its own notice of appeal in the case. It is not yet clear what exactly the regulator aims to challenge with its appeal. Many speculate the SEC will attempt to overturn the July 2022 ruling that deemed secondary XRP sales as non-securities transactions.
Ripple’s Cross-Appeal
While Ripple has not provided specifics on the cross-appeal yet, Chief Legal Officer Stuart Alderoty said it is intended to cover all bases. He stressed the SEC will not challenge the determination that XRP is not a security. Alderoty believes Ripple will target the judge’s findings on the company’s XRP sales on exchanges and other distributions.
The CEO Speaks Out
Ripple CEO Brad Garlinghouse slammed the SEC for creating havoc in the crypto industry. He expressed confidence that Ripple will prevail in this latest legal bout. “Ripple was the industry leader in the first go-round in court, and we look forward to leading the way in this round as well,” Garlinghouse stated.
Conclusion
The SEC and Ripple’s appeals ensure the high-stakes legal drama between the two parties will persist. The appeals briefs, when filed, should provide much-awaited clarity on the exact scope of the SEC and Ripple’s legal challenges. For now, the XRP cryptocurrency remains entangled in the lawsuit’s uncertainty.
