In a significant development in its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC), Ripple Labs has filed a notice of cross-appeal. This action comes in response to the SEC’s announcement of its own appeal last week, marking a notable escalation in the legal battle.
The cross-appeal was submitted to the U.S. Court of Appeals for the Second Circuit. Ripple’s intention is to ensure that all arguments, particularly those concerning the nature of investment contracts, are thoroughly evaluated. Stuart Alderoty, Chief Legal Officer of Ripple, emphasized the necessity of this move, stating, “We’re really doing that to make sure that we leave nothing on the table, including the argument that there cannot be an investment contract without the essential rights and obligations found in a contract.”
Alderoty expressed optimism about the forthcoming legal proceedings, stating, “We look forward to the federal court of appeals finally putting a stake in the heart of Gensler’s misguided attack on our industry.”
The legal saga dates back to 2020 when the SEC accused Ripple of generating $1.3 billion through the sale of XRP, asserting that the cryptocurrency constitutes an unregistered security. In a pivotal ruling last year, Judge Analisa Torres concluded that Ripple’s programmatic sales of XRP did not infringe upon securities laws; however, direct sales to institutional investors were deemed a violation. As a result, Ripple was ordered to pay $125 million in fines.
This latest cross-appeal is part of Ripple’s comprehensive defense strategy, aiming to challenge specific elements of the court’s prior ruling and reinforce its position in the ongoing legal skirmish.
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