Ripple Confirms SEC Has Not Appealed XRP Security Ruling

Ripple’s Chief Legal Officer Confirms SEC Has Not Appealed XRP Ruling

Ripple’s chief legal officer, Stuart Alderoty, confirmed that the U.S. Securities and Exchange Commission (SEC) has not appealed the court’s ruling that XRP is not a security. This confirmation came in response to the news that the SEC filed a Form C civil appeal. Ripple attorney James K. Filan also confirmed that the SEC had indeed filed documents with the Court of Appeals.

“No surprises here — once again it’s been made clear. The Court’s ruling that ‘XRP is not a security’ is NOT being appealed. That decision stands as the law of the land,” Alderoty stated.

Form C, a “Civil Appeal Pre-Argument Statement,” is a document where the SEC states its intention to appeal certain legal decisions made in a case. In Ripple’s case, the SEC asked the court to review the application of the law in a previous summary judgment. This means that the judge will analyze the legal aspects of the case, not just the final decision.

In its claim, the SEC requested a reconsideration of the court’s decision regarding the sale of Ripple’s XRP token on exchanges, as well as personal sales of the token by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

Ripple’s Cross-Appeal and Future Implications

Ripple is set to file its own cross-appeal to challenge the ruling on institutional sales. Both sides are preparing for a lengthy process that could change how digital assets are classified and regulated in the future. Alderoty urged observers to watch for Ripple’s Form C filing this week.

Impact on XRP Price

Amid the latest developments in the case, the price of XRP has remained relatively stable. The asset’s price has increased by 1.74% over the past week. At the time of writing, XRP is trading at $0.5468. This stability comes despite the overall crypto market experiencing a growth of 0.59%, reaching a capitalization of $2.36 trillion within 24 hours.

Ongoing Disputes and Timeline

According to Alderoty, the case could extend until July 2025. In a conversation with a Fox Business correspondent, he noted that Ripple will also file a Form C application to outline its arguments for a counter-appeal. The SEC will have 90 days to file an opening brief, and Alderoty expects the regulator to use this time to prepare a comprehensive presentation of its arguments.

“Both parties will then agree on a briefing schedule, and the SEC has up to 90 days to file its first brief. Alderoty says he expects them to take the full 90 days. That opening brief will be a full recitation of all the legal arguments that the SEC will be making. Ripple will file a response and then its own brief. The full briefing process, according to Alderoty, will go through July 2025.”

Ripple’s IPO Status

Ripple CEO Brad Garlinghouse commented on the possibility of entering the stock market, emphasizing the position of the SEC and Ripple’s financial stability. When asked about a potential IPO after expected regulatory clarifications, Garlinghouse stated that an IPO is not a high priority for the company.

“An IPO has not been a high priority for us and part of that is because the SEC is not our friend. I’m not really popular there. They don’t have pictures of me in the halls of the SEC unless they have dart boards on them.”

Garlinghouse also expressed optimism about the future of the crypto market despite current industry challenges. He highlighted growing interest from major players like institutional investors and the potential for improved regulatory environments to facilitate future growth.

Background of the SEC and Ripple Saga

In December 2020, the SEC filed a lawsuit against Ripple Labs Inc. and its co-founders, Christian Larson and Jed McCaleb. The lawsuit accused them of conducting unwarranted sales of XRP tokens, which the SEC considered unregistered securities. The SEC alleged that Ripple issued billions of XRP tokens, selling them for more than $1.3 billion without proper registration.

Ripple argued that XRP should not be considered a security but a digital currency similar to Bitcoin and Ethereum, which the SEC does not classify as securities. The company insisted that its actions complied with applicable laws.

In July 2023, the court recognized that selling XRP to private investors cannot be equated to securities transactions. However, the issue of large players purchasing tokens under a preliminary agreement remains open.

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