The US Securities and Exchange Commission (SEC) has filed an appeal against the recent decision in the Ripple case. The agency filed the notice of appeal to the Second Circuit Court of Appeals on October 7.
This comes after the July 2023 ruling, which stated that Ripple sold XRP in a manner that was against federal securities laws concerning institutions. Ripple’s Chief Legal Officer, Stuart Alderoty, called the SEC’s appeal part of the agency’s constant legal hostility.
He described the SEC’s lawsuit as unmerited and said the blockchain firm may opt for a cross-appeal. Garlinghouse and other executives at Ripple, notably CEO Brad Garlinghouse, have complained loudly and often, indicating they are more than willing to keep going to court.
Ripple Defends XRP Status Amid SEC Appeal
It needs to be clarified which of the arguments made during the Ripple case the SEC intends to appeal to the US Court of Appeals regarding. The agency may base the ruling on the July 2023 decision on Ripple’s programmatic sales or the August 7 final judgment on the penalty amount.
However, experts believe the SEC may concentrate on one or both of the following areas. In its notice of appeal, the SEC referred to August 7 as the final judgment date, which Fox Business journalist Eleanor Terret picked up on.
The SEC has been criticized for being vague about its appeal goals, which has questioned its approach. As the legal saga continues, Ripple stated that the court’s decision supports the idea that XRP is not a security for programmatic sales.
XRP Price Plummets After SEC Appeal
After the SEC filed its appeal, the price of XRP fell more than 10% to $0.5237. This pullback wiped out the previous week’s recovery when XRP had stabilized at $0.60.
The wider market and the selloff in the altcoins put pressure on the XRP price. Nevertheless, the management of Ripple Laboratories has not discouraged the investors as they believe they are within the law.
Brad Garlinghouse, CEO of Ripple, said that the SEC’s action has endangered investors and damaged the regulatory agency’s reputation. He reinforced the non-security status of XRP regardless of the SEC’s appeal over the recent judgment.
SEC Faces Criticism
Ripple’s legal advisers are getting ready for the next round of the lawsuit as the SEC continues to make its case. According to Alderoty, the SEC’s appeal is “disappointing but not unexpected,” which means that Ripple will be preparing for the case once again.
The blockchain firm has accused the SEC and its current chairperson, Gary Gensler, of having an irrational litigation approach. Ripple executives think that the SEC’s case is weak, with Alderoty mentioning that the court has identified no fraud or loss of money.
Ripple continues to stand for its business operations and the legal status of XRP. Hence, the appeals to be heard in the court of appeal will be very important in determining the final outcome of the legal dispute.
Ripple’s ongoing legal struggle with the SEC has become rather popular, as the case’s outcome may have considerable implications for the entire crypto market. Ripple’s management keeps disputing the SEC strategy, emphasizing the organization’s intention to ensure the legal framework of XRP.
