Regarding the SEC’s most recent court action, Ripple has responded. This makes the legal argument even bigger, and many people who care about crypto are watching closely.
Judge Torres’s decision on August 7, 2024, that when Ripple sold XRP to anyone who wanted to buy it, those sales weren’t securities. The SEC is working to have this ruling overturned since they didn’t like it. At this point, Ripple is resisting the SEC’s attempt to sway the judge’s opinion.
On October 10, 2024, court documents attested to Ripple’s cross-appeal. As per the statement provided by Stuart Alderoty, the lead attorney for Ripple, the cross-appeal tackles significant points about the characteristics of “investment contracts” and the rights commonly linked to them.
Ripple aims to make it clear that XRP transactions devoid of the fundamental rights and responsibilities included in formal agreements should not be categorized as investment contracts.
In a series of tweets, Alderoty highlighted the SEC’s appeal and its basis. He stated that the SEC’s decision to appeal stems from their loss on crucial points. Ripple’s legal team believes this cross-appeal is necessary to leave no part of their defense unaddressed.
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SEC’s Appeal Not Focused on XRP’s Security Status
The SEC is not contesting the decision that XRP is not a security, which is another important issue brought out by Alderoty. XRP does not fit the requirements to be categorized as a security, as the SEC had previously admitted.
The SEC even apologized for implying that tokens like XRP would be regarded as securities in a different case. This ruling’s aspect is considered settled law and will not be appealed further.
Ripple is relieved to receive this affirmation, which guarantees that XRP’s status won’t alter no matter what happens in the remaining aspects of the legal dispute.
Previous Legal Challenges and Ripple’s Confidence
Alderoty also pointed out that the SEC had previously attempted to appeal similar rulings regarding XRP sales and distributions. The SEC argued that certain transactions, including those made to Ripple employees and developers, could be classified as securities. These appeals, however, were not successful, and Ripple anticipates more of the same going forward.
If the SEC keeps contesting these elements of the case, Ripple’s legal team is certain that they will lose again.
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What Lies Ahead for Ripple and the SEC
The matter will now be heard by the United States Court of Appeals, which will also consider Ripple’s cross-appeal. In his tweets as Ripple’s attorney, Alderoty conveyed hope, saying that Ripple anticipates the court’s ruling.
With this action, he said, SEC Chair Gary Gensler’s “misguided” approach to the cryptocurrency industry might come to an end.
As Ripple continues to defend its position in court, the next chapter of this legal war will concentrate on settling these unresolved concerns. An important turning point in the history of XRP and its classification is something that both Ripple and the SEC are getting ready for.
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