The U.S. Securities and Exchange Commission (SEC) has reignited its legal battle with Ripple Labs, filing an appeal to challenge a previous court decision that ruled in Ripple’s favor. Despite the new legal action, XRP, the native token of Ripple, remains largely unaffected in terms of price, continuing to trade sideways at around $0.55.
SEC Seeks “De Novo” Review
On Oct. 17, the SEC filed a “Civil Appeal Pre-Argument Statement” (Form C) with the U.S. District Court for the Southern District of New York. The agency is asking for a de novo review, meaning the judge will reassess the legal basis of the earlier ruling instead of merely reviewing its outcome. The appeal centers on whether the court was correct in granting partial summary judgment to Ripple, particularly concerning its XRP sales on exchanges.
SEC appeals Ripple case to Second Circuit. Source: X
The SEC has also raised concerns about Ripple’s distribution of XRP in exchange for non-cash assets, arguing that this issue warrants further legal examination. This move follows a previous appeal filed on Oct. 2, which cited U.S. Supreme Court precedent as part of the SEC’s argument strategy.
Ripple responded with its own cross-appeal, aimed at addressing broader legal questions in the case. Chief Legal Officer Stuart Alderoty noted the company’s goal to tackle all aspects of the SEC’s claims, including its focus on XRP being classified as an “investment contract.”
Ripple braces for prolonged legal battle into mid-2025. Source: X
Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the company is fully prepared for the next phase of this legal battle, which could last until mid-2025.
XRP Price Holds Firm Despite SEC Appeal
Despite the new SEC appeal, Ripple (XRP) price remains stable, trading at around $0.5511 as of Friday. The market appears to have absorbed the latest legal developments. The token has avoided further declines. However, XRP has faced challenges, having dropped 85% from its 2018 all-time high of $3.84.
XRP’s price has remained relatively steady despite facing significant legal headwinds over the past few years. The token is down 85% from its all-time high of $3.84, which it reached in 2018. However, institutional interest in XRP remains strong. Firms such as Bitwise and Canary Capital have recently filed for spot XRP exchange-traded funds (ETFs).
Although SEC’s appeal could complicate proposed ETFs, the market has not respond vigorously yet. Investors may be waiting for more developments.
The briefing process for the SEC’s appeal is expected to extend through July 2025, leaving the resolution of this legal battle far from over. However, XRP’s price stability suggests the market is cautiously watching, with no immediate reaction to the latest filings.
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