Ripple made a significant move in the ongoing legal battle with the United States Securities and Exchange Commission (SEC) by filing a “cross-appeal” on October 10, 2024. This cross-appeal comes in response to the SEC’s recent appeal earlier this month, and it means that both Ripple’s and the SEC’s appeals will now be consolidated into one case.
The main focus of Ripple’s cross-appeal is to challenge the court’s decision that the sale of XRP to investors did not violate any securities laws. This is a crucial point in the case, especially considering the court’s ruling that Ripple must pay a penalty of $125 million for its actions. While this amount is significantly lower than the SEC’s initial demand of $2 billion, it still remains a substantial sum compared to Ripple’s offer of $10 million.
Ripple’s chief legal officer, Stuart Alderoty, has been vocal about the case on social media, particularly on X (formerly known as Twitter). In a recent post, Alderoty highlighted that the SEC lost on all key points in the previous judgment, which may have prompted their appeal. He also mentioned that Ripple’s cross-appeal is aimed at addressing any potential issues that could arise in the legal battle.
Alderoty believes that the SEC may argue that the sale of XRP on exchanges and its distribution to employees and developers should be classified as securities. Despite this, he is confident that Ripple will emerge victorious once again and hopes that the court will reject the SEC’s recent attempts, especially those led by SEC Chair Gary Gensler.
Ripple CEO Brad Garlinghouse also weighed in on the situation, accusing the SEC of causing confusion in the cryptocurrency industry instead of establishing clear rules. He stated, “With our cross-appeal today, we’re looking forward to sealing the SEC’s fate and finally putting an end to the SEC’s regulation-by-enforcement agenda.”
As the legal battle between Ripple and the SEC continues to unfold, it remains to be seen how the court will ultimately rule on the case. The outcome of this cross-appeal could have far-reaching implications for both Ripple and the broader cryptocurrency industry.