Bitcoin.com - Ripple's chief legal officer has confirmed that a major ruling finding XRP not a security will stand despite an appeal by the U.S. Securities and Exchange Commission (SEC). The regulator's motion challenges several other aspects of the July 2023 ruling regarding XRP. Ripple plans to cross-appeal as both sides brace for a protracted legal battle that could reshape cryptocurrency regulation.

Ripple's general counsel, Stuart Alderoti, commented that the U.S. Securities and Exchange Commission (SEC) formally filed an appeal of Ripple's XRP case on Thursday, saying that the ruling affirming that XRP is not a security in retail sales remains unchanged. He wrote in X:

No surprises – again, it’s clear. The court ruling that ‘XRP is not a security’ is not being challenged. That decision remains the law of the land.

On Thursday, the SEC formally appealed a partial ruling by District Judge Analisa Torres, reigniting a legal battle over whether XRP sales on cryptocurrency exchanges are considered securities. The move challenges key aspects of a July 2023 ruling that represented a partial victory for Ripple. However, the court also found that Ripple’s institutional sales of XRP were unregistered securities and levied a $125 million fine on the company.

In its appeal, the SEC is challenging several key rulings, including the ruling that non-cash distributions of XRP and sales by Ripple executives Brad Garlinghouse and Chris Larsen did not violate securities laws. The appeal opens the door to further legal challenges with significant implications for cryptocurrency regulation.

Ripple plans to file its own Form C next week as a cross-appeal to challenge the institutional sales ruling. Both sides are bracing for a lengthy appeals process that could impact how digital assets are classified and regulated in the future. Alderoti noted:

Stay tuned for Ripple's Form C submission next week.