Ripple has filed a cross-appeal in response to the U.S. Securities and Exchange Commission’s (SEC) ongoing legal battle, aiming to ensure that no legal arguments are left unresolved. Ripple’s Chief Legal Officer, Stuart Alderoty, announced the move on X (formerly known as Twitter), highlighting that the SEC lost on all critical points in its previous attempts, promoting regulatory body’s appeal.
In his post, Alderoty stated, ” The SEC lost on all key points, that’s why they appealed. Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an “investment contract” without there being essential rights and obligations found in a contract.”
The SEC lost on all key points—that’s why they appealed. Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an “investment contract” without there being essential rights and obligations found in a contract.
— Stuart Alderoty (@s_alderoty) October 10, 2024
The legal tussle revolves around whether Ripple’s XRP sales and distributions qualify as securities. Last year, the SEC tried, but failed, to appeal early rulings that determined XRP sales on exchanged and other XRP distributions, such as those made to employees and developers, were not securities. XRP’s recent cross-appeal seeks to further solidify these points and prevent the SEC from reviving these failed arguments.
Ripple’s Confidence in Future Rulings
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Alderoty also suggested that the SEC would likely attempt to relitigate these points. “They’ll likely go after these again – and they will lose on both again.,” he remarked confidently. XRP has been a prominent figure in challenging the SEC’s stance on digital assets, which has been seen by many as a broader attack on the cryptocurrency industry.
The legal outcome of the case is seen as pivotal for the crypto sector, as XRP continues to push back against SEC Chairman Gary Gensler’s regulatory strategy. Alderoty’s post concluded with a strong statement: “We look forward to the federal court of appeals finally putting a stake in the heart of Gensler’s misguided attack on our industry.”
In response to Alderoty’s X post, Ripple’s CEO Brad Garlinghouse slams SEC’s appeal, saying they’re creating havoc by are not following the law. Confident in Ripple’s position, he vows to lead the way, ending SEC’s regulation-by-enforcement agenda harming US innovation & tech.
As I said earlier this month, if Gensler and the SEC cared about the rule of law, they would accept their loss and move on. But they are not interested in faithfully applying the law or in providing clarity to industry players in the US. Under Chair Gensler, the agency is only… https://t.co/hFlkXw83s8
— Brad Garlinghouse (@bgarlinghouse) October 10, 2024
As the appeal process progresses, Ripple remains determined to protect its position while the crypto world closely watches the next developments in the case.
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Also Read: SEC Commissioner: Crypto Regulation a “Disaster” Amid Lawsuits
