XRP-Backed Lawyer Reveals Ripple’s Key Move in Appeal

Pro-XRP attorney Fred Rispoli has shed light on Ripple’s strategy for its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). Rispoli suggested that certain securities laws will play a crucial role in Ripple’s appeal, adding a new dimension to the case. Additionally, CEO#BradGarlinghousereaffirmed that XRP is not a security, allaying concerns within the community.

What will be Ripple’s masterstroke in mutual appeal?

Rispoli’s comments came after the SEC announced its intention to appeal a federal judge’s ruling in its case against Ripple. On October 2, the SEC filed an appeal with the Second Circuit Court of Appeals, continuing its four-year legal fight with #Ripple💰 . The#SECclaims that Ripple’s sale of #Xrp🔥🔥 tokens violated federal securities laws.

Fred Rispoli, known for his strong pro-XRP stance, outlined a timeline for the legal proceedings, emphasizing the importance of Ripple’s strategy. He stated that Ripple will likely rely on so-called “blue sky” laws, which are state securities laws designed to protect investors from fraudulent practices and unregistered securities sales.

When asked how these laws would factor into Ripple’s defense, Rispoli simply replied, “Ripple will use this argument in its cross-appeal.” Blue sky laws are named after the idea that some speculative investment schemes have no value beyond the “blue sky.”

These laws require strict regulation of securities offerings at the state level, including securities registration, broker-dealer regulation, and licensing of investment professionals. Their goal is to protect investors from fraudulent sales practices and worthless investments.

The fundamental role of blue sky laws

Rispoli’s mention of blue sky laws adds an intriguing layer to Ripple’s legal strategy. While federal securities laws, which the SEC is enforcing, have been the main battleground, the introduction of state-level regulations could undermine the SEC’s arguments.

Blue sky laws vary from state to state, which could provide Ripple with an additional legal advantage. If the company can prove that its XRP sales did not violate these state laws, it could strengthen its defense.

SEC Appeal Details

The SEC is currently seeking to overturn a significant portion of Judge Analisa Torres’ July 2023 ruling. The judge ruled that while institutional sales of XRP violated federal securities laws, sales to retail investors did not.

The SEC failed in its attempt to file a preliminary appeal of this decision. Despite this setback, it continues its efforts with the Second Circuit Court of Appeals to challenge the interpretation of securities laws.

An official statement from an SEC spokesperson said the judge's ruling is inconsistent with "decades of Supreme Court precedent and securities laws." The SEC remains confident in the success of its appeal.

However, Ripple remains equally determined. Brad Garlinghouse, in his response to the SEC's appeal, was highly critical. On Platform X (formerly Twitter), he wrote:

"If Gensler and the SEC were rational, this case would have been dismissed long ago. This case did nothing to protect investors but instead damaged the SEC's credibility and reputation."

Garlinghouse further stated that the SEC “lost on every significant point.” He also emphasized that XRP’s status as an unregistered security has now become legal precedent. He added that the SEC’s failed attempt at a preliminary appeal suggested that they “have no intention of challenging XRP’s status as an unregistered security.”#BecomeCreator $BTC