XRP Lawsuit: SEC Filing, Ripple CEO Infer No Appeal Against Judge Torres Ruling

XRP Lawsuit: US SEC filing in Binance case and Ripple CEO Brad Garlinghouse hinted at unlikely appeal against Judge Torres summary judgment.
By Varinder Singh
Updated September 14, 2024
Ripple Vs SEC Lawsuit: Why Appeal Against Brad Garlinghouse, Larsen Is Strong?

Highlights

  • U.S. SEC and Ripple executives hinted at no appeal against Judge Torres' summary judgment.
  • Ripple executives believe the XRP lawsuit is over while the SEC deliberates to appeal the remedies ruling.
  • If SEC filed and lose an appeal, it will create a binding precedent over other courts weakening the agency's case.
  • XRP price has climbed more than 9% in a week.

XRP Lawsuit: The latest filing by the U.S. Securities and Exchange Commission (SEC) has likely confirmed that the government agency will not appeal Judge Torres’ ruling. While Ripple received a stay order from the court to hold a $125 million payment, CEO Brad Garlinghouse and CLO Stuart Alderoty remain optimistic about no appeal by the SEC.

Advertisement
Advertisement

US SEC and Ripple CEO Hints At No Appeal in XRP Lawsuit

The US SEC has filed a motion to amend the original complaint in Binance lawsuit. The government agency regrets using the term “crypto asset securities” in crypto cases and decided to drop its use.

Notably, the SEC is not advancing the argument that 10 tokens such as Solana (SOL), Cardano (ADA), and POL (previously MATIC) are not securities. However, the agency will continue to allege these tokens as securities in secondary markets, believing that the crypto continue to be offered and sold as investment contracts. As a result, the crypto industry saw a rise in issues related to secondary sales.

This signals the regulator will not appeal Judge Torres’ summary judgment on XRP programmatic sales in the lawsuit. Moreover, the judge did not issue a ruling on secondary sales, but stated that “programmatic buyer stood in the same shoes as a secondary market purchaser.”

Advertisement
Advertisement

Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty’s Views

While the SEC deliberates to appeal against the remedies ruling, Ripple CEO Brad Garlinghouse and CLO Stuart Alderoty have confirmed that the XRP lawsuit is over. They do not intend to appeal first, but cross-appeal is more likely.

If the agency loses to Ripple in the Second Circuit Court, it will create a binding precedent over other courts. It discourages the SEC from appealing the Ripple case unless the agency has new clarity or evidence.

Alderoty in a post today said “Ripple’s case is over, but the ‘fair notice’ defense is still alive for others. The SEC cites the 2017 DAO report as industry notice that ‘crypto asset securities’ are subject to US securities laws. Seven years later, the SEC apologizes to a federal judge.”

Garlinghouse asserts that XRP is gaining regulatory clarity in the US and other countries after the XRP lawsuit. This clarity, alongside developments like Grayscale XRP Trust and CME XRP Index, underscores the integration of XRP into traditional financial systems, including a likely XRP ETF.

XRP price has soared more than 9% in a week after the latest developments. The price currently trading at $0.57, with a 24-hour low and high of $0.555 and $0.574, respectively. Furthermore, the trading volume has decreased by 23% over the last day.

Advertisement
Varinder Singh
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.