Amid the ongoing legal dispute between Ripple [XRP] Labs and the U.S. Securities and Exchange Commission (SEC), the SEC has taken a step forward in its efforts to appeal.
On October 17, the agency submitted a ‘Civil Appeal Pre-Argument Statement’ (Form C), indicating its intention to contest a previous court ruling in the case.
This marks a significant development in the high-profile legal battle as the outcome of this appeal could potentially redefine the extent of SEC jurisdiction over the cryptocurrency industry.
Where do things stand?
For those who might not be familiar, on October 2, the SEC made a significant move by filing a notice of appeal in the ongoing Ripple lawsuit, aiming to reverse a decision made by Judge Analisa Torres.
However, on October 16, it was revealed that the SEC failed to meet the deadline for submitting their Form C, leading to widespread speculation.
As anticipated, many individuals in the cryptocurrency community are debating whether this delay hints at a potential private settlement with Ripple or if it was a result of an error on Gary Gensler’s team.
When the SEC initiated legal action against Ripple and two of its executives in 2020, Ripple emphasized that the lawsuit did not pertain solely to their company but was a defense for the entire digital currency sector.
Ripple argued that this case indicated the SEC’s broader intention to target more entities within the industry.
As this case now progresses to the Second Circuit Court of Appeals nearly four years later, its significance only intensifies.
Consequently, the ruling could establish a critical precedent, impacting how securities regulations are enforced on token issuers, particularly within the significant financial center of the Southern District of New York.
Ripple’s Chief Legal Officer’s Perspective
Responding to the SEC’s actions, Ripple Labs’ Chief Legal Officer, Stuart Alderoty, shared his thoughts on X (formerly Twitter) and commented,
“No surprises here—once again, it has been clarified. The Court’s affirmation that “XRP is not a security” is NOT being contested. This decision remains the law of the land. Stay tuned for Ripple’s Form C to be submitted next week.”
Following the SEC’s previous appeal, Alderoty also expressed his disappointment earlier when he mentioned,
“The SEC lost on all significant points—that’s why they appealed. Today, Ripple filed a cross-appeal to cover all bases, including the argument that there can’t be an “investment contract” without fundamental rights and obligations found in a contract.”
Effect on XRP’s Market Value
During these legal updates, XRP seems to be encountering some short-term obstacles. The cryptocurrency was priced at $0.5499 at the time of writing, reflecting a 0.99% decrease over the last 24 hours according to CoinMarketCap.
Nevertheless, despite this minor decline, the overall outlook for XRP remains optimistic, with the coin demonstrating a 2.56% increase over the past week.
This positive trend in the weekly performance suggests that despite ongoing regulatory challenges, investors’ faith in XRP’s long-term potential may still be robust.