Ripple, a San Francisco-based company specializing in crypto payments, has officially filed a cross-appeal against the SEC in order to ensure that all aspects of the case are thoroughly examined.
The notice of the cross-appeal was submitted in the U.S. District Court of New York, in response to the court’s final judgment entered on August 7, 2024. This development was shared by renowned defense attorney James K. Filan in a recent post.
This move comes shortly after the SEC filed an official appeal against the Ripple decision.
To provide a brief overview of the Ripple judgment, it’s important to note that both the SEC and Ripple achieved partial victories in the summary and final judgments. The court ruled that Ripple violated securities laws through its institutional sales of XRP, while also stating that the company’s programmatic sales and other distributions of the token are not considered investment contracts.
As a result, Ripple was ordered to pay a fine of $125 million for the violation of laws in its institutional sales, and an injunction was imposed on future institutional sales, with the company being required to seek the SEC’s permission before conducting these transactions.
In response to the court’s verdict on its XRP-related institutional sales, Ripple has submitted a cross-appeal notice, indicating its dissatisfaction with the decision and its intention to challenge it in the U.S. Court of Appeals.
Both Ripple and the SEC are seeking an appellate review of Judge Analisa Torres’ verdict, with the expectation that both appeals will be combined into a single case in the Second Circuit.
To shed light on Ripple’s stance, the company’s Chief Legal Officer, Stuart Alderoty, hinted at what the crypto community can expect from its official cross-appeal brief. He emphasized that the company is determined to leave “nothing on the table” and will focus on the argument that an investment contract cannot exist without a contractual agreement outlining the rights and obligations between the parties.
In addition, Alderoty discussed the potential contents of the SEC’s appeal brief, suggesting that while the SEC may not appeal XRP’s non-security status, it might challenge the decision on Ripple’s programmatic XRP and other distributions to employees and developers.
Despite the frustration expressed by Ripple’s CEO, Brad Garlinghouse, regarding the SEC and its chair Gary Gensler, the company remains hopeful that its cross-appeal will bring an end to the SEC’s regulation-by-enforcement agenda.
It’s important to note that this content is intended for informational purposes only and should not be viewed as financial advice. Readers are strongly encouraged to conduct thorough research before making any investment decisions.