Coinspeaker SEC Pushes Forward in Appeal against Ripple as XRP Price Stays Steady
The United States Securities and Exchange Commission (SEC) has filed new documents as it continues to seek a reversal of a prior judgment in favor of Ripple Labs. Despite the development, XRP XRP $0.55 24h volatility: 1.1% Market cap: $31.24 B Vol. 24h: $1.40 B , the native token of Ripple, remains largely unaffected in terms of price, continuing to trade sideways.
On October 17, the SEC filed a “Civil Appeal Pre-Argument Statement”, also known as Form C, to the US District Court for the Southern District of New York. The regulator is requesting that the court review certain angles of the previous judgment “de novo”. In legal terms, it means that the judge would reassess how the law was applied in the initial ruling rather than simply reviewing the outcome.
The core of the SEC’s appeal focuses on whether the district court erred in granting partial summary judgment in favor of Ripple Labs, specifically regarding the company’s sales of XRP on exchanges.
The SEC’s Form C also challenges Ripple’s distribution of XRP in exchange for consideration other than cash, an issue that the regulatory body insists requires further legal review.
Background
This follows an earlier appeal filed with the Second Circuit Court of Appeals on October 2, where the SEC cited US Supreme Court precedent as part of its legal strategy. The initial appeal triggered an 11% drop in the price of XRP at the time, reflecting the market’s sensitivity to regulatory actions.
Ripple has not remained idle in its defense. Shortly after the SEC’s initial appeal, the company filed a cross-appeal to ensure that broader legal questions surrounding the case are thoroughly addressed.
Ripple’s Chief Legal Officer, Stuart Alderoty, stated in a post on social media platform X that the company aims to ensure all aspects of the legal battle are covered, including arguments related to the “investment contract” claims the SEC has made against Ripple.
Back in July 2023, Judge Analisa Torres delivered a crucial ruling, ordering Ripple to pay a $125 million penalty to the SEC. While the judge ruled that Ripple had violated federal securities laws in its institutional sales of XRP, this penalty was much lower than the $2 billion the SEC had originally sought.
Ripple Price Movement
The ongoing SEC dispute appears to be largely absorbed by the broader market, as XRP price remains relatively unaffected. As of Friday, the token is trading steadily around $0.5511. However, Ripple’s native cryptocurrency has faced significant challenges over the past few years, primarily due to its legal battle with the SEC. XRP has plummeted 85% from its all-time high of $3.84, set in 2018.
Despite the turbulence, institutional interest in XRP remains intact. Notably, asset management firms Bitwise and Canary Capital have recently filed for spot XRP exchange-traded funds (ETFs). While some speculate that the SEC’s appeal could derail these ambitious proposals, investor optimism persists. Moreover, analysts like Bloomberg’s Eric Balchunas believe that XRP ETFs would potentially be a dream if Vice President Kamala Harris wins the US presidential elections.
With both Ripple and the SEC preparing for the next chapter in their ongoing legal clash, the resolution of this high-stakes battle is still a long way off.
next
SEC Pushes Forward in Appeal against Ripple as XRP Price Stays Steady
