Ripple submits Form C as it cross-appeals in its legal clash with the SEC while XRP trades 2% down in the past day.
By Anisha Pandey
Edited by Julia Sakovich
Updated
3 mins read
As the US Securities and Exchange Commission (SEC) intensifies its case against Ripple, the blockchain company has stepped up its defense by submitting Form C, essential for its cross-appeal in the legal battle over XRP. This document, known as the Civil Appeal Pre-Argument Statement, lists the critical issues Ripple intends to address.
Ripple’s Chief Legal Officer, Stuart Alderoty, stated that the case extends beyond just XRP’s classification as a security. He clarified that the court has already recognized XRP, alongside Bitcoin, as a non-security, and importantly, the SEC isn’t challenging this fundamental ruling. Alderoty explained:
“The Appeals Court reviews the record that has already been set…and we have a great record. The SEC can’t submit new evidence or ask us to produce more.”
Notably, Ripple’s cross-appeal focuses on four main legal issues: the ingredients of the alleged securities transactions, the treatment of institutional sales, the clarity of the injunction, and the fair notice defense.
The timing of Ripple’s cross-appeal aligns with the SEC’s request to extend its briefing deadline to January 2025. Now in the appeal stage, the court will review existing records rather than rehashing old evidence or introducing new material, Alderoty explained. This streamlining could reduce the drawn-out litigation drama of previous proceedings. The chief legal executive urged the community to stay vigilant, as he believes the SEC’s broader tactic is to create distractions.
Ripple’s cross-appeal will now merge with filings under case 24-2648 as the lead case as the court proceeds with scheduling orders for briefings. This consolidated approach aims to address Ripple’s primary concerns, particularly around institutional sales and the SEC’s lack of a clear and specific injunction, as noted in the appeal.
The high-profile Ripple vs. SEC case, which started in 2020, alleged Ripple’s sale of XRP XRP $2.21 24h volatility: 0.2% Market cap: $128.86 B Vol. 24h: $3.29 B constituted an unregistered securities offering. However, earlier this year, Judge Analisa Torres ruled that while institutional sales did breach securities laws, Ripple’s programmatic sales to the broader public did not.
Meanwhile, Ripple CEO Brad Garlinghouse recently acknowledged that his company should have engaged more proactively with U.S. regulators, a lesson that he’s committed to addressing as the company expands.
Ripple’s XRP has had its fair share of price fluctuations amid these ongoing legal challenges. Currently trading around $0.52, the token is down 11% over the past month. Interestingly, XRP achieved a local high of $0.66 on September 29.
Despite this turbulent climate, institutional interest in XRP appears strong. Recently, two asset management giants, Bitwise and Canary Capital, filed for spot XRP ETFs with the SEC, even as uncertainties swirl around the token.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
