Ripple Files Cross-Appeal to Strengthen Legal Position Against SEC

Ripple Labs has taken action by filing a cross-appeal with the US Court of Appeals for the Second Circuit, following recent developments in their legal battle.

A cross-appeal happens when both parties contest a lower court’s ruling. In this case, Ripple is not only responding to the SEC’s appeal but is also challenging certain aspects of the prior judgment it disagrees with, suggesting they see room for improvement in their favor.

The SEC’s appeal stems from the lawsuit it launched against Ripple in December 2020, with the appeal filed earlier this month. Ripple’s Chief Legal Officer, Stuart Alderoty, explained that the cross-appeal is meant to ensure every angle of the case is fully addressed. However, he didn’t disclose specific details about the arguments Ripple intends to present.

Alderoty emphasized the importance of covering all bases, including the notion that without clear contractual rights and obligations, there can’t be an investment treaty. This comes after District Judge Analisa Torres ruled in July 2023 that Ripple’s sales of XRP to exchanges and its resale to retail investors did not breach federal securities laws, determining that XRP is not a security.

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Both parties are expected to soon provide a high-level overview of their cases, with more detailed arguments to be submitted in their upcoming briefs. The SEC’s brief is anticipated in late January 2024, while Ripple’s response, including their rebuttal to the SEC’s arguments, will follow thereafter.

Kosta Gushterov