US SEC files appeal in Ripple case: XRP sees mixed market reaction

  • SEC advanced its appeal in the Ripple lawsuit, potentially reshaping U.S. crypto regulation.
  • XRP showed weekly gains despite a short-term dip amid ongoing legal uncertainties with the SEC.

As a seasoned researcher with years of experience navigating the complex world of financial regulation and cryptocurrencies, I find myself intrigued by the latest turn of events in the Ripple lawsuit saga. The SEC’s decision to appeal its case against Ripple Labs could indeed reshape U.S. crypto regulation and set a crucial precedent for how security laws are applied to token issuers.


In the midst of the continuous courtroom dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), the SEC pressed ahead with their attempts to appeal the case.

On October 17th, the agency submitted a ‘Pre-Argument Statement for Civil Appeal’ (Form C), indicating their intention to contest a prior court ruling concerning the case.

As I delve deeper into this high-stakes legal tussle, I can’t help but feel the weight of its potential impact on the regulatory landscape for cryptocurrencies. The decision from this appeal might well redraw the lines of the Securities and Exchange Commission’s jurisdiction in this burgeoning sector.

The story so far?

If you haven’t heard yet, on October 2nd, the Securities and Exchange Commission (SEC) made a notable move by submitting an appeal notice in the ongoing legal dispute with Ripple. The aim is to reverse a decision made by Judge Analisa Torres.

On October 16th, it became public knowledge that the SEC failed to meet the deadline for submitting their Form C, leading to much conjecture among many.

It’s not surprising that members of the cryptocurrency community are discussing whether this postponement might indicate a potential private agreement between Ripple, or simply an error made by the team of Gary Gensler.

In 2020, when the SEC filed a lawsuit against Ripple and two of its top executives, Ripple didn’t view this legal dispute as solely pertaining to their company. Rather, they framed it as a defensive stand for the entire cryptocurrency sector.

In this instance, Ripple contends that the case indicates a wider intent by the SEC to focus on and potentially regulate more organizations operating within this sector.

Four years on, with the case moving up to the Second Circuit Court of Appeals, its significance continues to increase.

Consequently, this decision may establish a significant precedent, shaping how security regulations are enforced on token issuers, notably in the primary financial district of New York’s Southern District.

Ripple’s CLO weighs in

In response to the Securities and Exchange Commission’s action, Ripple Labs’ Chief Legal Officer, Stuart Alderoty, expressed his thoughts on a platform once known as Twitter, where he pointed out…

There’s no change in this situation – it was previously established and remains so now. The court has decided that XRP is not classified as a security, and there are no plans to challenge this decision. This ruling currently holds as the legal precedent. Next week, Ripple will submit their Form C for public viewing.

Indeed, much like before, Alderoty previously expressed his discontent as well, stating it on a prior occasion.

Originally, the SEC lost all their main arguments, hence they chose to appeal. Today, Ripple countered by submitting a cross-appeal, aiming to exhaust all potential points, including the assertion that for something to be an “investment contract,” it must include fundamental rights and duties akin to those found in a traditional contract.

Impact on XRP’s price

With ongoing legal changes, it seems that XRP is encountering some immediate hurdles for now. The cryptocurrency was priced at $0.5499 during our latest update, representing a minor decrease of 0.99% over the past day according to CoinMarketCap.

However, despite this slight decline, the broader outlook for the token remains positive, with XRP showing a 2.56% increase over the past week.

This upward trend in weekly performance suggested that despite the ongoing regulatory hurdles, investors’ confidence in XRP’s long-term potential may still be holding strong.

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2024-10-18 15:04