The U.S. Securities and Exchange Commission (SEC) submitted a pre-argument statement (Form C) stating that the regulator’s appeal in the Ripple case will not address the legal standing of the contentious XRP coin. Chief legal officer Stuart Alderoty of Ripple stated on social media that the court’s decision that XRP is not a security is “the law of the land.”
SEC Appeal in Focus
The United States SEC is pursuing Ripple’s sales of the XRP token on trading platforms and the utilization of XRP as a payment method, as anticipated.
For allegedly encouraging and abetting the aforementioned sales, the SEC will pursue Ripple co-founder Chris Larsen and CEO Brad Garlinghouse once more. The appeal will also center on the Ripple CEOs’ private offers, sales, and distribution of XRP to staff members.
Regarding the August final judgment decision rendered by Judge Analisa Torres, the SEC will not be appealing Ripple’s $125 financial penalty. Interestingly, the $0 disgorgement order was not appealed by the SEC either. The SEC “wisely recognized” that the disgorgement was “a loser argument,” according to attorney Fred Rispoli, which is why it declined to bring it up as an appellate issue.
Ripple Predicted to Win at Least One Issue
Legal expert Jeremy Hogan predicts that Ripple will win at least one issue with a 90% chance. Furthermore, he believes the corporation has an 80% probability of winning “both major issues.” Nevertheless, Ripple’s chances will probably be influenced by the judges who are assigned to the case.
Conclusion
The SEC’s decision to avoid challenging the legal status of XRP in its appeal suggests a tacit acknowledgment of the court’s ruling that XRP is not a security, which Ripple’s legal team views as a landmark victory. By focusing on Ripple’s sales practices and the roles of its executives, the SEC is narrowing its arguments, likely because it recognizes the difficulty of overturning the broader judgment on XRP’s classification.
Legal experts’ confidence in Ripple’s chances of success on multiple issues, combined with the SEC’s choice to avoid appealing certain penalties, signals that Ripple could continue to gain favorable legal ground, further strengthening its position in the cryptocurrency industry.
Victor Swaezy
Victor Swaezy is a crypto-journalist with more than 3 years of experience in covering blockchain technology and digital currencies news. Known for his comprehensive reporting, Victor has contributed to leading industry publications, providing market participants with the required knowledge to make informed decisions. When he is not working, he loves to watch movies and have a good time.