Ripple Strikes Back: Cross-Appeal Filed Against SEC Ruling

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.

Ripple filed a cross-appeal against the SEC's appeal in the XRP lawsuit on October 10, according to court documents. This comes after Judge Torres ruled on August 7, 2024 that Ripple's sales of XRP did not constitute a securities offering.

The SEC has filed an appeal against this ruling, seeking to overturn the judge's decision. In response, Ripple is now filing a cross-appeal to further defend its position.

As highlighted by Stuart Alderoty, Ripple's lead attorney, in a series of tweets, the cross-appeal addresses key points regarding the nature of "investment contracts" and the rights typically associated with them.

Ripple aims to establish that XRP transactions lacking the fundamental rights and obligations inherent in formal agreements should not be deemed investment contracts.

Moreover, Alderoty points out that the SEC's appeal does not dispute the court's ruling on XRP's non-security status. This aspect of the ruling, which acknowledges that XRP does not meet the criteria to be classified as a security, is considered settled law and will not be subject to further appeals.

According to Alderoty, the SEC had previously attempted to appeal similar rulings regarding XRP sales and distributions, arguing that certain transactions, such as those made to Ripple employees and developers, could be categorized as securities. However, these appeals were unsuccessful, and Ripple anticipates the same outcome moving forward.

If the SEC continues to pursue these claims, Ripple's legal team maintains that they will face another loss in court.

The United States Court of Appeals will now hear the matter and also consider Ripple's cross-appeal. In his tweets as Ripple's attorney, Alderoty expressed hope that Ripple will see justice in the court's ruling.

He adds that this case may put an end to SEC Chair Gary Gensler's "misguided" approach to the crypto industry.

As Ripple continues to defend its position in court, the next chapter of this legal battle will focus on resolving these remaining points of contention. Both Ripple and the SEC are preparing for a pivotal moment in the story of XRP and its classification.

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