Ripple Moves to File Cross-Appeal in SEC Legal Battle

Ripple Labs has announced plans to file a cross-appeal in its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). The cross-appeal comes in response to the SEC’s Oct. 2 appeal, which seeks to overturn a July 2023 ruling that XRP, Ripple’s native cryptocurrency, cannot be classified as a security.

Ripple Fights to Preserve Legal Defenses

Ripple’s decision to file a cross-appeal ensures the company can address all legal matters as the case moves forward. This action allows Ripple to maintain its legal defenses as the SEC’s appeal continues through the courts. Ripple CEO Brad Garlinghouse took to social media, stating that Ripple is “looking forward to sealing the SEC’s fate and finally putting an end to the SEC’s regulation-by-enforcement agenda.”

The SEC initially sued Ripple in December 2020, alleging that the company had unlawfully sold XRP as an unregistered security. However, the July 2023 court decision ruled that Ripple’s sale of XRP on exchanges did not violate federal securities laws. Despite this ruling, the SEC remains firm in its position, prompting its appeal to challenge the court’s interpretation of what qualifies as a security.

Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted the importance of the cross-appeal in ensuring Ripple’s ability to address any aspect of the ongoing case. The cross-appeal ensures that Ripple can fully engage in the legal process as both parties prepare to submit detailed legal briefs in the coming weeks.

As the legal battle unfolds, Ripple and the SEC will outline their arguments in court, with the future of XRP’s regulatory status hanging in the balance.