In its recent appeal, the US Securities and Exchange Commission did not contest the court’s decision that XRP is not a security in its lawsuit against Ripple.
Stuart Alderoty, chief legal officer of Ripple, stressed that the SEC’s Form C does not dispute the decision that XRP is not a security.
In its most recent appeal, the US Securities and Exchange Commission does not contest the court’s decision that XRP is not a security in its lawsuit against Ripple.
The SEC I filed a Form C civil appeal on October 16, along with a pre-argument statement contesting several of the court’s findings in favor of the defendants in its XRP XRP$0.5522 orders regarding summary judgment.
In an appeal filed on October 17, Ripple’s defense lawyer, James Filan, requested that the court reconsider its rulings about the company’s exchange-based XRP sales as well as the individual XRP sales of co-founder Chris Larsen and CEO Brad Garlinghouse.
The status of XRP’s court verdict is unaltered.
Stuart Alderoty, responded to the SEC’s appeal regarding X, highlighting that the SEC’s Form C does not contest the decision that XRP is not a security.
Alderoty stated, “That decision stands as the law of the land,” Ripple is getting ready to file its own Form C the following week.
In response to accusations against Garlinghouse and Larsen, the SEC filed an appeal, claiming that the executives had broken securities laws by promoting and selling XRP and that they had “aided and abetted Ripple’s violations of those provisions.”
The appeal challenges the court’s decision to award the defendants partial summary judgment, citing the XRP sales on exchanges, Garlinghouse and Larsen’s sales, and Ripple’s XRP distributions in exchange for non-cash payments.
“De novo review is required for these issues,” the SEC declared in the appeal.
The case of SEC v. Ripple will continue until July 2025.
Fox Business producer Eleanor Terrett provided a summary of the appeals timetable, which indicates that Ripple is anticipated to file its Form C seven days after the SEC files.
Terrett stated that Alderoty anticipates the process taking the entire ninety days. “Then, both parties will agree on a briefing schedule, and the SEC then has up to ninety days to file its first brief,” Terrett wrote.
Alderoty says the briefing process will probably last until July 2025.
In August 2023, Judge Analisa Torres of the US District Court for the Southern District of New York partially ruled in favor of Ripple Labs, holding that it is not a security when XRP is sold programmatically on digital asset exchanges.
The court entered a definitive judgment prohibiting Ripple from violating Section 5 of the Securities Act of 1933 in the future and imposing a $125 million civil penalty on August 7.
