Originally published on: October 18, 2024
The recent appeal filed by the United States Securities and Exchange Commission (SEC) against Ripple does not challenge the court’s ruling that XRP is not a security. In a Form C civil appeal submitted on Oct. 16, the SEC raised concerns about certain aspects of the court’s summary judgment favoring Ripple.
The appeal, unveiled by Ripple’s defense attorney James Filan, focuses on Ripple’s XRP sales on exchanges and personal sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. However, it notably excludes any challenge to the court’s decision on XRP’s non-security status.
Stuart Alderoty, Ripple’s chief legal officer, emphasized the significance of the court’s ruling on XRP’s security classification and clarified that the SEC’s appeal does not dispute this status. While the SEC targeted allegations against Garlinghouse and Larsen for violating securities laws, the court’s decision on XRP’s non-security classification remains unchanged.
Ripple plans to file its own Form C in response to the SEC’s appeal. The legal battle is expected to continue with both parties agreeing on a briefing schedule, followed by a 90-day deadline for the SEC to submit its first brief. The process could extend through July 2025, as explained by Alderoty.
This latest development comes after Judge Analisa Torres ruled in favor of Ripple Labs in July 2023, affirming that XRP is not a security in programmatically sold transactions on digital asset exchanges. Despite previous legal setbacks, Ripple’s non-security status remains intact amid ongoing regulatory scrutiny.
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