Ripple Cross-Appeals SEC Lawsuit, Filing Form C Just before Deadline

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As an analyst with years of experience navigating the complexities of financial markets and regulatory battles, I find myself intrigued by Ripple’s latest move in its ongoing legal tussle with the SEC. The submission of Form C for their cross-appeal is a strategic step that underscores their commitment to addressing the core issues at hand.

In response to a strengthened lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple, the blockchain firm is bolstering its defense strategy. To support its appeal in the ongoing XRP legal dispute, Ripple has filed Form C – a crucial document for this purpose. This form, referred to as the Civil Appeal Pre-Argument Statement, outlines the main points that Ripple plans to discuss in the case.

In simpler terms, Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized that the ongoing case is not solely about determining whether XRP is classified as a security or not. He pointed out that the court has previously recognized both XRP and Bitcoin as non-securities. Crucially, he mentioned that the Securities and Exchange Commission (SEC) is not contesting this fundamental decision. In other words, the focus of the case goes beyond just XRP’s classification.

In simpler terms, “The Appeals Court examines the existing case history that’s already been established… and since we’ve got a solid record, the Securities and Exchange Commission (SEC) is not allowed to present new evidence or demand additional records from us.

Significantly, Ripple’s legal appeal centers around four key points: the components of the supposed securities deals, the handling of institutional sales, the precise nature of the injunction, and the argument for a fair warning in the context of its defense.

Focus on Core Legal Issues

Ripple’s cross-appeal coincides with the SEC extending its deadline for submitting briefs to January 2025. Now in the appeal phase, the court will examine existing documents instead of rehashing old evidence or presenting new ones, as Alderoty clarified. This approach may shorten the prolonged legal drama experienced in past cases. The top legal officer encouraged the community to remain alert, as he suspects the SEC’s strategy is to create diversions.

In simpler terms, the court has decided to combine Ripple’s appeal with case 24-2648, making it the main case moving forward. This consolidated approach is intended to deal with Ripple’s major issues, such as their contention about institutional sales and the SEC’s failure to provide a clear and specific injunction, as mentioned in the appeal. The court will now issue scheduling orders for additional legal briefings related to this combined case.

The legal dispute between Ripple and the SEC, initiated in 2020, claimed that Ripple illegally offered unregistered securities through the sale of XRP. Yet, earlier this year, Judge Analisa Torres decided that while institutional sales violated securities regulations, Ripple’s automatic sales to the general public did not.

In a recent statement, Ripple’s CEO, Brad Garlinghouse, admitted that his company could have been more active in communicating with U.S. regulatory bodies. He is now determined to rectify this as Ripple continues to grow.

XRP’s Future Amid Uncertainty

Ripple’s XRP currency has experienced its share of price ups and downs due to ongoing legal issues. At present, it’s trading near $0.52, representing a drop of 11% over the last month. Notably, XRP reached a recent peak of $0.66 on September 29.

In spite of the volatile market conditions, there seems to be a robust appetite from institutions for XRP. Notably, two prominent financial firms, Bitwise and Canary Capital, have submitted applications for a spot XRP Exchange Traded Fund (ETF) with the Securities and Exchange Commission (SEC), amidst ongoing speculation about the token.

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2024-10-25 11:33