Breaking: Ripple Files Cross-Appeal In SEC Lawsuit

Ripple’s Chief Legal Officer has revealed that his company has filed a cross-appeal in its case against the US Securities and Exchange Commission (SEC). This provides a new twist to the legal battle that has been ongoing since December 2020.

Ripple Files Cross-Appeal Against SEC

Alderoty revealed in an X post that they filed a cross-appeal against the US SEC today. He stated that they took this step to ensure that “nothing’s left on the table,” including the argument that an investment contract cannot exist without essential rights and obligations.

The Ripple CLO noted that the SEC had already said they weren’t appealing the ruling that XRP isn’t a security. Therefore, their cross-appeal won’t border on this issue. He added that this remains the law and that an appeal on other issues doesn’t change it.

Meanwhile, Stuart Alderoty mentioned how the US SEC unsuccessfully tried to take an early appeal of Judge Analisa Torres’ rulings on Ripple’s XRP sales on exchanges and other distributions not being securities. He added that the Commission will likely appeal this ruling again. However, he is confident that they will lose again on both rulings.

Alderoty concluded by saying,

We look forward to the federal court of appeals finally putting a stake in the heart of Gensler’s misguided attack on our industry.

This cross-appeal will likely provide a major boost for the crypto firm in its battle against the SEC. Legal expert Fred Rispoli had stated that it would be foolish if the firm didn’t file the cross-appeal. He made this statement while opining that the company could defeat the SEC if the panel is fairly divided.

Cross-Appeal Will Put An End To SEC’s Enforcement Actions

Ripple’s CEO Brad Garlinghouse stated in an X post that, with the cross-appeal, they are looking forward to sealing the US SEC’s fate and ending the Commission’s regulation-by-enforcement agenda. He mentioned that his firm was the industry leader in the first go-round in court and that they also look forward to leading the way in this appeal round.

Garlinghouse again affirmed that the Commission made a mistake filing their appeal in the long-running lawsuit. He remarked that this shows that the Commission and its Chair, Gary Gensler, are not interested in faithfully applying the law or providing clarity to industry players in the US.

The Ripple CEO added,

Under Chair Gensler, the agency is only interested in creating havoc – US innovation and technology be damned.

The US SEC won’t have only Ripple to contend with. Crypto exchange Crypto Com recently filed a lawsuit against the Commission following a Wells Notice it received from the Agency. Meanwhile, Commissioner Mark Uyeda admitted that the Commission’s crypto approach so far has been a “disaster.”

He said,

We have been sending this ‘policy through enforcement,’ we have done nothing to provide guidance on it, and as a result, this has been achieved by the courts. And different courts have ruled different ways.