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Ripple CLO Stuart Alderoty says the company is considering filing a cross-appeal in the SEC lawsuit.
In the ongoing battle between Ripple and SEC, in Ripple news today, The Ripple CLO made the disclosure while reacting to the SEC’s decision to appeal Judge Analisa Torres’ verdict. The SEC filed its notice of appeal in the Ripple case yesterday, a few days before the Oct. 7 deadline.
Notably, the SEC only notified a New York federal court of its decision to appeal its ruling in the Second Circuit of Appeals. However, the commission has yet to file the actual appeal brief.
Ripple Considers Filing Cross-Appeal
Nonetheless, Alderoty disclosed that Ripple is considering a cross-appeal, potentially allowing the company to challenge certain aspects of Judge Analisa Torres’ decision.
Following Alderoty’s statement, FOX Business journalist Eleanor Terrett highlighted two major areas Ripple’s appeal might focus on. According to her, Ripple could challenge Judge Torres’ decision on institutional sales or the $125 million penalty imposed for these transactions.
🚨NEW: @Ripple’s Chief Legal Officer Stuart Alderoty says Ripple is considering a cross appeal. This means Ripple could choose to file an appeal on Judge Torres’ ruling on institutional sales or on the penalty of $125M. Both appeals would stay wrapped up in one Second Circuit… https://t.co/n138zZs8Sc
— Eleanor Terrett (@EleanorTerrett) October 2, 2024
In July 2023, Judge Torres found that Ripple violated securities laws by selling XRP to institutional clients in the U.S. Over a year later, she ordered the company to pay a penalty of $125 million for this violation. Additionally, the judge imposed an injunction on the company’s future sales to U.S.-based institutional clients.
According to Judge Torres’ final ruling, Ripple must register future XRP-related institutional sales with the SEC before selling the tokens to institutional clients in the United States. Notably, Ripple did not seem pleased with this decision.
The company commended the judge for drastically reducing the SEC’s proposed fine from $2 billion to $125 million but ignored the injunction aspect of the final verdict.
What to Expect from Ripple Cross-Appeal
With Ripple considering whether to file a cross-appeal, Terrett said the company only has a 14-day window to file this notice. According to her, this window starts today, a day after the SEC officially notified the court of its appeal decision.
Furthermore, the pro-crypto journalist said both Ripple’s potential cross-appeal and the SEC’s appeal would be jointly heard in a single case at the Second Circuit. This would streamline the legal process and ensure the issues raised by both parties are handled within the same case.
Lawyer Expects Appeal Ruling by Early 2026
Meanwhile, pro-XRP lawyer Fred Rispoli predicted the timeline for the Second Circuit’s ruling in the SEC v. Ripple case.
He speculated that the court might issue the appeal verdict by early 2026, over a year from today. However, the lawyer mentioned that the parties can decide to withdraw their respective appeals at any time.