In a significant turn of events in the ongoing SEC lawsuit, Ripple made an announcement yesterday regarding its decision to file a cross-appeal of Judge Torres’s final judgment, which was issued on August 7, 2024.
Ripple’s CEO Brad Garlinghouse and Chairman Chris Larsen have been named as defendants in the cross-appeal notice submitted to the United States Court of Appeals of the Second Circuit on October 10, 2024. This move comes after the SEC appealed the ruling at the beginning of October, which required Ripple to pay a $125 million civil penalty for its XRP sales, a significantly reduced amount compared to the $2 billion initially sought by the regulator.
The crypto community has been closely following Ripple’s latest cross-appeal against the SEC. Ripple’s CEO Brad Garlinghouse expressed his optimism regarding the company’s cross-appeal strategy in a recent tweet. 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. Ripple was the industry leader in the first go-round in court, and we look forward to leading the way in this round as well.”
Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized the SEC’s loss on all significant points, which is why they have chosen to appeal the ruling. He highlighted that Ripple’s cross-appeal aims to address all aspects of the case, including the argument that an “investment contract” cannot exist without essential rights and obligations outlined in a contract.
Alderoty also pointed out that the SEC had previously acknowledged that XRP itself is not considered a security and apologized in another case for suggesting that a token could be classified as a security. Despite this, the SEC is pursuing an appeal on other issues, which Alderoty believes will not change the existing legal framework.
In the past, the SEC unsuccessfully attempted to appeal judgments related to Ripple’s XRP sales on exchanges and other distributions of XRP. Alderoty expressed confidence that the SEC’s efforts will be futile, and he anticipates the Federal Court of Appeals will ultimately put an end to SEC Chair Gary Gensler’s misguided crackdown on the cryptocurrency industry.
The developments in the Ripple-SEC lawsuit continue to capture the attention of the crypto community, and stakeholders are eagerly awaiting the outcome of the cross-appeal filed by Ripple. Stay tuned for further updates on this ongoing legal battle.