- The SEC’s appeal does not challenge the court’s ruling that XRP is not a security.
- The appeal questions Ripple executives’ XRP sales and the court’s partial summary judgment favoring the defendants.
- The appeal process is expected to extend through July 2025, with both sides filing Form C briefs.
The United States Securities and Exchange Commission (SEC) has filed an appeal in its case against Ripple, though it notably does not challenge the court’s ruling that XRP is not a security. On October 16, the SEC submitted a Form C civil appeal requesting a review of specific aspects of the court’s summary judgment, focusing on Ripple’s XRP sales on exchanges and personal sales by Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen.
This latest development comes after Ripple’s defense attorney, James Filan, shared the SEC’s appeal on October 17. The appeal seeks to challenge the partial summary judgment granted in favor of Ripple, which ruled that XRP is not considered a security in certain contexts, including programmatic sales on exchanges.
Ripple’s Legal Response and Upcoming Filings
Ripple’s chief legal officer, Stuart Alderoty, commented on the matter, confirming that the SEC’s appeal does not dispute XRP’s status as a non-security. Alderoty stressed that the decision remains legally binding, and Ripple is preparing to submit its own Form C in the coming week.
The SEC’s filing also raises concerns about whether Garlinghouse and Larsen violated securities laws through their personal sales of XRP. The SEC argues that the two executives “aided and abetted” Ripple’s breaches of securities regulations and requests a review of these claims.
Appeal Timeline and Expected Duration
The legal process is expected to stretch over a lengthy timeline. According to a timeline shared by Fox Business producer Eleanor Terrett, Ripple has seven days to submit its Form C in response to the SEC’s filing. Following this, both parties will agree on a briefing schedule, with the SEC having up to 90 days to file its opening brief. This process is anticipated to last until July 2025.
Earlier this year, in July 2023, Judge Analisa Torres ruled in favor of Ripple, determining that XRP is not classified as a security when sold on digital asset exchanges. However, Ripple was fined $125 million and barred from further violations of Section 5 of the Securities Act of 1933.
