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Ripple Counters SEC with Cross-Appeal Filing
Ripple’s Chief Legal Officer recently announced that the company has filed a cross-appeal, aiming to close any remaining issues.
This development might have restarted the legal battle between the US Securities and Exchange Commission (SEC) and Ripple.
Ripple Files Cross-Appeal Despite Holding Advantage
The legal clash between the SEC and Ripple began in December 2020 when the SEC filed a lawsuit against Ripple, alleging the unauthorized sale of $1.3 billion in “securities” through XRP tokens.
In July 2023, the judge presiding over the case ruled that XRP sales do not qualify as investment contracts. Under Chair Gary Gensler, the SEC continued its push to reverse the court’s ruling with an appeal in October 2024.
Read more: Who Is Gary Gensler? Everything To Know About the SEC Chairman
Recently, Ripple announced it has also countered with a cross-appeal. A cross-appeal occurs when the prevailing party challenges portions of the court’s initial ruling it deems unfavorable. In this instance, Ripple, holding the advantage, seeks a more definitive resolution to end the legal dispute with the SEC.
“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 – Chief Legal Officer of Ripple – said.
In response to these developments, XRP recorded a modest 1.37% increase in the past 24 hours, currently trading around $0.53. Since early October, XRP has dropped over 23% from $0.66 to $0.50. BeInCrypto’s recent analysis indicates that XRP whales are accumulating, potentially signaling a price rebound.
However, the legal battle with the SEC has not affected Ripple’s growth plans. Ripple recently launched a crypto storage and management service for banks and fintech companies. In addition, Ripple also launched its own stablecoin.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Notably, Gensler’s approach to regulation by enforcement has been criticized by other SEC officials. In a recent interview with Fox Business News, SEC Commissioner Mark Uyeda publicly criticized Gensler’s approach.
“I believe that the SEC’s policies and approach over the past several years have been a disaster for the whole industry,” SEC Commissioner Mark Uyeda stated.
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