Key Takeaways:
- Ripple has appealed the SEC ruling that labeled its institutional XRP sales as securities, disputing the application of the Howey test.
- The appeal seeks a “de novo” review, allowing the court to reassess legal interpretations from scratch.
- Ripple’s chief legal officer criticized the SEC’s strategy as creating unnecessary confusion for Ripple and the broader crypto industry.
Ripple Labs is intensifying its legal fight with the U.S. Securities and Exchange Commission (SEC) by filing an appeal in the U.S. Court of Appeals for the Second Circuit, challenging the SEC’s ruling on XRP’s classification in institutional sales.
Ripple’s appeal, led by chief legal officer Stuart Alderoty, disputes the SEC’s application of the Howey test, a legal standard used to determine if a transaction qualifies as a security.
Today, Ripple filed a Form C – listing the issues we plan to raise on our cross appeal. A few things to keep in mind as we move forward:
— Stuart Alderoty (@s_alderoty) October 25, 2024
The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being… https://t.co/AmFocAnbPx
Ripple argues that the SEC misapplied this test in defining XRP’s institutional sales as securities transactions, leading to a $125 million fine from a previous court ruling.
Ripple seeks a de novo review, which allows the appeals court to re-examine the district court’s interpretations from scratch.
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed the Civil Appeal Pre-Argument Statement (Form C). The relevant pages are below. pic.twitter.com/usm3fCjG20
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 25, 2024
This filing follows the SEC’s own October appeal, which focuses only on XRP’s institutional sales, not its programmatic sales on exchanges.
Ripple remains confident in its position, with Alderoty criticizing the SEC’s actions as confusing and detrimental to the crypto industry’s growth.
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