SEC’s Ripple appeal doesn’t challenge XRP security ruling

As a seasoned researcher with a penchant for understanding the intricacies of blockchain and digital assets, I find myself closely monitoring the latest developments in the SEC vs. Ripple case. The recent appeal by the SEC doesn’t necessarily pose a direct challenge to the court’s ruling that XRP is not a security, but rather focuses on specific aspects related to Ripple’s sales practices and individual transactions by its executives.


In its recent appeal, the U.S. Securities and Exchange Commission (SEC) does not contest the court’s decision classifying XRP as a non-security asset in its case against Ripple.

On October 16th, the Securities and Exchange Commission (SEC) submitted a Form C appeal, which included a preliminary argument statement, challenging specific parts of the court’s decision granting summary judgement to the defendants in relation to their XRP (XRP) rulings.

Ripple’s defense lawyer, James Filan, made a plea on October 17th asking the court to reconsider its rulings concerning Ripple’s XRP transactions through exchanges, as well as individual XRP sales by Brad Garlinghouse (Ripple CEO) and Chris Larsen (co-founder).

Court ruling on XRP’s status remains intact

In simpler terms, Stuart Alderoty, Ripple’s top legal advisor, responded to the Securities and Exchange Commission (SEC) appealing over matter X, highlighting that the SEC’s Form C does not challenge the decision that XRP is not classified as a security.

In his statement, Alderoty said that the decision in question now serves as a national legal standard. He also mentioned that Ripple plans to submit their own Form C document next week.

SEC’s Ripple appeal doesn’t challenge XRP security ruling

Based on the documentation, the SEC’s appeal focused on accusations made against Garlinghouse and Larsen. It contends that these individuals broke securities regulations by offering and distributing XRP, and furthermore, they assisted in Ripple’s infractions of these rules.

As a researcher, I am contesting the court’s ruling that partially favored the defendants, which includes the approval of XRP sales on exchanges, individual sales by Garlinghouse and Larsen, as well as Ripple’s distribution of XRP in exchange for non-monetary compensation.

“These issues are to be reviewed de novo,” the SEC stated in the appeal.

SEC’s Ripple appeal doesn’t challenge XRP security ruling

SEC vs. Ripple case will go through July 2025

Based on the schedule for appeals presented by Eleanor Terrett from Fox Business, it’s anticipated that Ripple will submit their own Form C seven days after the SEC has filed theirs.

According to Terrett, both parties will set a timetable for briefings, after which the SEC has as long as 90 days to submit their initial filing. Alderoty anticipates that the entire process could last the full 90 days.

The briefing process will likely extend through July 2025, according to Alderoty.

SEC’s Ripple appeal doesn’t challenge XRP security ruling

According to earlier reports by CryptoMoon, Judge Analisa Torres of the US District Court for the Southern District of New York made a decision in favor of Ripple Labs in August 2023. This ruling stated that XRP was not classified as a security when it was being traded automatically on cryptocurrency exchanges.

On August 7th, the court issued a permanent ruling that prohibits Ripple from any future breaches of Section 5 of the Securities Act of 1933 and levied a $125 million fine as a civil penalty.

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2024-10-18 11:39