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Ripple files cross-appeal in ongoing legal battle with SEC

Ripple files cross-appeal in ongoing legal battle with SEC

GrafaGrafa2024/10/11 01:30
By:Liezl Gambe

Ripple Labs has officially filed a cross-appeal in its legal dispute with the U.S. Securities and Exchange Commission (SEC). 

According to a filing on October 10 in the U.S. District Court for the Southern District of New York, Ripple (CRYPTO:XRP) disclosed its plan to bring the case to the U.S. Court of Appeals for the Second Circuit. 

This move follows the SEC’s own appeal filed on October 2, as both parties contest the August 7 ruling that ordered Ripple to pay a $125 million civil penalty for violating securities laws. 

The appeals court will now review both the SEC’s original appeal and Ripple’s cross-appeal to determine if any legal or procedural errors were made in the previous decision. 

Notably, the SEC had initially sought a $2 billion fine against Ripple, while the blockchain company argued for a penalty not exceeding $10 million. 

This legal battle dates back to 2020, when the SEC accused Ripple of conducting an unregistered securities offering through its sale of XRP, its native cryptocurrency. 

In a significant ruling in July 2023, Judge Analisa Torres found that Ripple’s institutional sales of XRP violated securities laws, while its programmatic sales to the general public and distributions to employees and developers did not constitute securities sales. 

Ripple’s Chief Legal Officer, Stuart Alderoty, stated on X, “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 essential rights and obligations in a contract.” 

He also noted that the SEC will not appeal the ruling that XRP itself is not a security, affirming that “the law remains unchanged.” 

Both Ripple and the SEC are expected to present further arguments in the coming weeks, but the timeline for these developments remains unclear. 

It is also uncertain whether the SEC will focus solely on the fines or continue to challenge broader rulings regarding XRP’s status as a non-security. 

At the time of writing, the XRP price was $0.5338.

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