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Ripple’s legal chief has reaffirmed that the core ruling declaring XRP not a security remains intact despite the appeal by the U.S. Securities and Exchange Commission (SEC). The regulator’s move challenges several other aspects of the July 2023 ruling regarding XRP. Ripple plans to file a cross-appeal, as both parties brace for a prolonged legal battle that could reshape cryptocurrency regulations.
Ripple’s Legal Chief Responds to SEC’s Appeal Over XRP Ruling
Ripple’s chief legal officer, Stuart Alderoty, addressed the U.S. Securities and Exchange Commission (SEC) officially filing an appeal in the Ripple case over XRP on Thursday, stating that the ruling affirming XRP is not a security in retail sales remains unchanged. He wrote on X:
No surprises here — once again it’s been made clear. The Court’s ruling that ‘XRP is not a security’ is NOT being appealed. That decision stands as the law of the land.
On Thursday, the SEC officially appealed the partial ruling by District Judge Analisa Torres, reigniting the legal battle over whether XRP sales on cryptocurrency exchanges qualify as securities. This move challenges key aspects of the July 2023 decision, which had delivered a partial win for Ripple. However, the court also found that Ripple’s institutional sales of XRP were unregistered securities and imposed a $125 million penalty on the company.
In its appeal, the SEC contests several important rulings, including the decision that non-cash XRP distributions and sales by Ripple executives Brad Garlinghouse and Chris Larsen did not violate securities laws. This appeal sets the stage for further legal battles with significant implications for the regulation of cryptocurrencies.
Ripple plans to file its own Form C next week as a cross-appeal to challenge the ruling on institutional sales. Both parties are preparing for an extended appeals process that could influence how digital assets are classified and regulated in the future. Alderoty noted:
Stay tuned for Ripple’s Form C to be filed next week.