SEC appeals, but XRP status remains unshaken

SEC appeals, but XRP status remains unshaken

On October 16, 2023, the United States Securities and Exchange Commission (SEC) filed an appeal in the well-known case against Ripple. However, the move does nothing to undermine the court's decision, which declared that XRP is not a security.

The appeal, which was made public on October 17 by Ripple attorney James Filan, focuses on certain aspects of the summary judgment in favor of Ripple and its executives. In it, the SEC asks the court to reconsider its decisions regarding XRP sales on exchanges and individual sales made by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

Stuart Alderoty, Ripple's general counsel, emphasized that the SEC's appeal does not appeal the court's key ruling regarding XRP's status as a non-qualified security. "That decision stands as the law of the land," Alderoty said, adding that Ripple plans to respond to the appeal through its own Form C, which is expected to be filed within a week.

According to the SEC filing, the appeal centers on the charges against Garlinghouse and Larsen, alleging that these executives violated securities laws by offering and selling XRP, and furthermore, that they "aided and abetted Ripple's violations of these regulations." The SEC is seeking to review the court ruling, which relates to, among other things, the sales of XRP on exchanges and the personal transactions of Garlinghouse and Larsen.

According to the timeline given by Fox Business producer Eleanor Terrett, Ripple is expected to file its Form C no later than seven days after the SEC. Thereafter, the two sides are expected to set a timetable for further action, with the SEC having a maximum of 90 days for its first report. Alderoty expects the process to drag on until July 2025.

Recall that in August 2023, Judge Analisa Torres of the U.S. District Court for the Southern District of New York partially ruled in favor of Ripple Labs, declaring that XRP is not a security if sold on exchanges. On the other hand, the court handed down a ruling that prohibits Ripple from further securities law violations and fined it $125 million.

Thus, the SEC vs. Ripple case continues to remain under scrutiny, and its further developments will have a major impact on the entire field of cryptocurrencies and the regulations associated with them.

Coingarage Team