The SEC has come under fire for failing to submit a crucial document in its ongoing legal battle with Ripple. The SEC still hasn't submitted the required Form C for its appeal to the Second Circuit Court of Appeals. 
This form is critical as it outlines the specific issues the SEC challenges in the case. Its absence has caused delays and sparked confusion, with some questioning the regulator's approach.
Yesterday, the SEC filed a modest appeal against Judge Analisa Torres' decision, which favored Ripple by deciding that XRP is not a security. However, the omission of Form C has sparked widespread criticism of the SEC's efficiency and strategy in this high-stakes action.
Observers have voiced worry that the delay may indicate more profound difficulties inside the SEC's legal procedure, casting uncertainty on how the case would move.
The post "SEC Faces Scrutiny Over Missing Form in Ripple Lawsuit Appeal" first appeared on 36crypto.com News.
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XRP’s value dropped over 10% on Thursday after the SEC filed an appeal against the court’s decision in its lawsuit against Ripple. This follows Judge Analisa Torres’s final ruling on Aug. 7, imposing a $125m penalty on Ripple, far less than the SEC’s initial $2b demand.
The court ruled that Ripple’s XRP sales to institutional investors were securities transactions, resulting in the penalty. However, Judge Torres said that these sales were neither fraudulent nor malicious, with no fraud claims or financial harm shown.
Further, the ruling clarified that while certain XRP transactions are considered securities, XRP itself is not inherently a security, providing key regulatory guidance for Ripple and the broader industry.
SEC Appeal Aims for XRP to Be Classified as Security Across All Transactions
The SEC appealed to the Second Circuit Court of Appeals, indicating its intent to challenge the ruling on several grounds. Central to the SEC’s appeal is its belief that the district court’s decision conflicts with long-standing Supreme Court precedents and established securities laws.
According to the SEC, XRP should be classified as a security in all sales, whether institutional or retail. It argues that XRP’s classification shouldn’t differ based on the transaction type.
Ripple’s CLO Says SEC Appeal is ‘Embarrassing’
Ripple’s chief legal officer Stuart Alderoty said on X that the SEC’s appeal was “disappointing, but not surprising.”
“This just prolongs what’s already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses,” he said.
Meanwhile, Ripple CEO Brad Garlinghouse said the company is prepared to defend its position in court for as long as necessary.
“Let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” he said.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.

Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Garlinghouse discussed the lawsuit last month at KBW2024 in Seoul, South Korea. He said he was uncertain about whether the SEC would appeal, yet he maintained that there was no viable way for the regulator to overturn the fundamental decision that “XRP is not, in and of itself, a security.”
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