SEC files appeal in Ripple case, but XRP holders see a silver lining
The United States Securities and Exchange Commission ($SEC) has initiated an appeal against Judge Analisa Torres’ previous ruling in its ongoing legal battle with Ripple. On Thursday evening, the $SEC filed a Civil Appellate Pre-Argument Statement, commonly known as Form C, to challenge specific aspects of the summary judgment that favored Ripple. Notably, the appeal does not challenge XRP’s legal status as a non-security.
### SEC appeal focuses on Ripple executives
XRP holders have expressed concern that the SEC may challenge the cryptocurrency’s securities status in its latest appeal. However, the agency’s filing does not target XRP’s classification, which is seen as a positive development for the crypto community as the appeal process unfolds.
In her landmark ruling in July 2023, Judge Torres ruled that Ripple’s sales of XRP to retail investors on exchanges did not violate federal securities laws. She ruled that these transactions did not meet the legal criteria for an investment contract, a major setback for the SEC’s efforts to enforce securities regulations on cryptocurrency sales.
The SEC's most recent filing with the U.S. Court of Appeals for the Second Circuit focuses on other aspects of Judge Torres' ruling. Specifically, he challenges the court's ruling that Ripple's offers and sales of XRP on digital trading platforms, along with personal sales by Ripple CEO Bradley Garlinghouse and Executive Chairman Chris Larsen, did not constitute securities violations. .
The SEC’s Form C raises questions including “whether the district court erroneously granted partial summary judgment in favor of defendants with respect to Ripple’s offers and sales of XRP on digital asset trading platforms (and Garlinghouse’s and Larsen’s aiding and abetting in those offers and sales), as well as their personal offers and sales of XRP and Ripple’s distributions of XRP in exchange for non-monetary consideration.”
The appeal requests de novo review, meaning the appellate court will reconsider these legal issues regardless of the district court's findings.
### XRP's non-security status remains intact
Ripple’s chief legal officer Stuart Alderoty commented on the appeal via a post on X (formerly Twitter). He clarified that the SEC is not challenging the ruling that XRP is not a security, stating, “That ruling stands as the law of the land.” Alderoty also confirmed that Ripple plans to file its own Form C in response next week, though a specific date was not provided.
Alderoty’s statement reinforces the SEC’s limited scope in its appeal, as the regulator is not challenging the legal determination that XRP itself is not a security.
### History and future implications
In August, Judge Torres issued her final judgment, which barred Ripple from further violations of Section 5 of the Securities Act of 1933 and imposed a $125 million fine on the company.
The appeal process is expected to proceed before a three-judge panel, with a final decision likely to be issued in at least a year. The SEC's focus now is on how the court's ruling on $XRP sales could influence future cases, potentially setting a precedent that could complicate the agency's regulatory approach to the cryptocurrency.
At the time of writing, XRP is trading at $0.549, down 1.28% on the day but up 1.9% over the past week. The market remains vigilant as the legal proceedings continue to unfold.#BecomeCreator #TopCoinsSeptember2024 #memecoincom 
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