Ripple Labs has announced that they will be filing a cross-appeal in response to the U.S. Securities and Exchange Commission’s (SEC) appeal in their ongoing legal battle. This move is aimed at ensuring that Ripple can maintain its legal defenses while the case progresses through the appeals court.
The SEC initially sued Ripple in December 2020, accusing the company of violating federal securities laws. However, in a significant ruling in July 2023, District Judge Analisa Torres determined that Ripple’s sales of XRP did not constitute the sale of securities. This decision was a major win for Ripple, as it meant that XRP was not considered a security under federal law.
Ripple’s Chief Legal Officer, Stuart Alderoty, explained that the cross-appeal is intended to ensure that Ripple can fully present its arguments in the case. He emphasized the importance of leaving no stone unturned, particularly highlighting the argument that an investment contract must include essential rights and obligations found in a standard contract.
Both Ripple and the SEC are expected to submit more comprehensive arguments in the coming weeks, outlining their positions on the case. While the SEC’s brief is expected to be filed by the end of January, Ripple’s opening brief, which will also serve as their response to the SEC’s arguments, will follow shortly after.
Alderoty expressed confidence in the legal process, stating that the court of appeals will provide much-needed clarity on the issue. However, he also noted that a policy solution from legislators would be the ideal outcome for the industry. In the absence of such a solution, Ripple is prepared to continue fighting through the litigation process to bring clarity to the cryptocurrency industry.
Overall, Ripple’s decision to file a cross-appeal underscores the company’s commitment to defending its position in the legal battle against the SEC. As the case progresses, both parties will have the opportunity to present their arguments and seek a resolution through the appeals court. The outcome of this case could have far-reaching implications for the cryptocurrency industry as a whole, making it a closely watched legal battle in the world of digital assets.