Ripple 
$0.540939 Labs’ Chief Legal Officer Stuart Alderoty shared the next steps in the ongoing lawsuit between Ripple and the United States Securities and Exchange Commission (SEC).
Steps of the Appeal Process
The case was filed in 2020 over the classification of XRP as a security and whether Ripple made these token sales without registering it under US laws. As the legal battle enters the appeal phase, the parties continue their preparations with the expectation that the process may extend until 2026.
Alderoty explained the reasons for the SEC’s appeal and Ripple’s cross-appeal at the company’s Swell conference. It stated that the SEC must file Form C specifying the matters it intends to litigate by October 16, 2024.
Ripple’s Cross Appeals
Ripple will launch its cross-appeal by filing its own Form C within two weeks. The company will appeal the original decision’s ruling that certain corporate sales of XRP constitute unregistered securities transactions.
“We think this appeal will go against the SEC,” Alderoty said, noting that the majority of appeals to the Second Circuit Court of Appeals upheld district court decisions.
In its cross-appeal, Ripple is focusing on specific provisions of Judge Analisa Torres’ decision that corporate sales of XRP violated securities laws. The company claims that these sales do not involve “investment contracts” and are therefore not securities.
Alongside its legal battle, Ripple continues to expand its global operations and has introduced its new stablecoin RLUSD. RLUSD is designed to enable fast and cheaper cross-border payments and will be issued under New York’s strict regulatory framework.
The case between Ripple and the SEC has the potential to create important legal precedents for the cryptocurrency market. The outcome of the appeal process could also provide guidance for other crypto companies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
