The legal fight between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a fresh twist, but XRP holders can rest easy for now. The SEC has filed a new appeal targeting key parts of the previous ruling in Ripple’s favor.
However, the ruling that XRP is not a security remains intact, offering stability in an otherwise turbulent landscape for Ripple. On October 17, the SEC took its latest step by filing a “Civil Appeal Pre-Argument Statement” or Form C with the U.S. District Court for the Southern District of New York.
SEC Files Form C: What’s at Stake?
This appeal challenges significant elements of the prior decision, particularly around Ripple’s institutional sales of XRP. Despite this, the SEC notably did not contest the ruling that XRP sales on retail exchanges do not count as security transactions—a critical win for Ripple and the broader cryptocurrency community.
The SEC’s appeal focuses on whether the court erred in granting partial summary judgment, specifically regarding Ripple’s sale of XRP to institutional investors and non-cash distributions of the token.
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The regulator argues that these types of transactions need further legal scrutiny . Ripple, however, remains unfazed. Stuart Alderoty, Ripple’s Chief Legal Officer, reaffirmed the company’s position , stating that XRP’s non-security classification won’t be overturned.
Ripple’s XRP Holds Steady
Ripple has weathered a legal storm for years, and this latest appeal is just another chapter in the prolonged battle. Despite the SEC’s ongoing efforts, Ripple’s strong legal stance and the current ruling in its favor have helped sustain confidence in XRP.
The market responded with relative calm. XRP continued trading around $0.55, maintaining stability, a hallmark of the token’s performance throughout this lengthy legal saga. The broader crypto market has also remained optimistic about Ripple’s future.
The potential of a more favorable regulatory environment and institutional interest have kept XRP on solid ground. Financial giants like Bitwise and Canary Capital have already filed for XRP-related exchange-traded funds (ETFs) , signaling that major players continue to believe in Ripple’s resilience and the token’s long-term value.
On the Flipside
- The SEC is not challenging XRP’s retail exchange sales, leaving a crucial ruling in place.
- Ripple’s legal team is confident in their cross-appeal, focusing on broader legal issues.
- Despite the appeal, institutional interest in Ripple and XRP remains strong.
Why This Matters
The SEC’s ongoing appeal is a significant development in the legal battle with Ripple, yet the outcome may take time. For XRP holders, the ruling that XRP is not a security provides stability in an otherwise volatile legal climate.
Confused by the recent news on SEC missing a filing deadline in the Ripple case? To learn more about the ongoing legal battle and its potential impact on XRP, read here:
SEC Misses Filing—or Did They? Ripple Case Heats Up Amid Rumors
Still wondering when the Ripple vs. SEC case will be settled? This article explores the potential timeline and its impact on XRP. Read more here:
Ripple vs SEC Drags On—XRP to Wait Until 2025 for Clarity?
