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Ripple vs. SEC: new company appeal. What happens to XRP?
By Davide Grammatica
Ripple Labs has asked an appeals court to review the old ruling on the illegality of the “institutional” sale of XRP
A new response to the SEC
Crypto companies are starting to get the hang of it, with the SEC gradually seeing itself being called out by the same players previously accused by the regulatory agency.
This turn has fallen to Ripple, which in recent hours has appealed challenging an earlier ruling by the Southern District Court of New York.
For those who do not remember it, this means the famous ruling by Judge Analisa Torres, who last year ruled that although “programmatic” sales of XRP did not violate financial asset laws, those “directed” to institutional investors were punishable.
Ripple had been ordered to pay a $125 million fine, and this also was well received, given the premise that threatened a penalty of over $2 billion.
Ripple Labs' move
Despite this, Ripple has decided to ask for reconsideration of this decision as well, leveraging an allegation of misapplication of the Howey test, the criterion used to classify XRP as a security.
“The SEC cannot present new evidence or ask us to produce new evidence,” Stuart Alderoty, chief legal officer of Ripple, said on X on the matter. “That means there won’t be all the drama we had in litigation when we ‘fought’ over documents.”
Today, Ripple filed a Form C – listing the issues we plan to raise on our cross appeal. A few things to keep in mind as we move forward:
The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being… https://t.co/AmFocAnbPx
— Stuart Alderoty (@s_alderoty) October 25, 2024
Also according to Alderoty, to date XRP would not be considered a security by the SEC, but the SEC has also appealed the court’s decision to allow the sale of XRP on the various exchanges.
“Please remember the broader strategy of the SEC, which is to try to create distraction and confusion for the entire crypto industry,” Alderoty pointed out. “Honestly, it’s just background noise now, the hard part of the fight is behind us.”
