Ripple Pushes Back: Cross-Appeal Notice Filed Against SEC

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As a seasoned analyst with years of experience navigating the intricate world of financial regulation and cryptocurrencies, I find myself intrigued by the latest development in the Ripple vs. SEC saga. Stuart Alderoty’s assertion that the SEC is appealing only what they left on the table seems to suggest a certain level of overreach or perhaps a stubborn refusal to accept defeat.

In a notable advancement for the legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple has made public its intention to challenge the SEC with a counter-appeal.

In response to the SEC’s recent challenge of a decision made by Judge Analisa Torres in 2023, this action takes place. This decision stated that the XRP token, which Ripple has been selling on open markets, does not fit the classification of a security under existing regulations.

Alderoty Highlights SEC’s Struggles And Cross-Appeal Rationale

The SEC is appealing because they lost on all important aspects in the case.

Today, Ripple has submitted a counter-argument, known as a cross-appeal, to exhaust all potential issues. Specifically, they argue that for something to be considered an “investment contract,” it must include crucial elements such as rights and responsibilities similar to those found in a traditional contract.

Additionally, the company’s legal representative pointed out that the Securities and Exchange Commission has chosen not to contest the decision classifying XRP as non-security. This underscores the commission’s understanding of the relevant laws concerning this matter.

Alderoty went on to explain that the regulatory body has faced challenges in its court battles with Ripple. He pointed out last year’s effort to challenge decisions classifying Ripple’s XRP sales on exchanges, as well as distributions to workers and developers, as not being securities.

As a researcher, I share Alderoty’s conviction that the Securities and Exchange Commission (SEC) may revisit these matters. However, I also concur with his prediction that their efforts could potentially meet with another setback.

‘They Should Accept Their Loss And Move On’

As a crypto investor, I can’t help but voice my thoughts about the ongoing legal tussle between Ripple and the Securities and Exchange Commission (SEC). In my perspective, Brad Garlinghouse, the CEO of Ripple, has rightfully criticized the SEC for its persistent pursuit of our company. He openly expressed his concerns, saying:

In my previous statement this month, I mentioned that if Gensler and the SEC truly valued the legal system, they would acknowledge their defeat and proceed. However, it appears they are more concerned with disregarding the law and causing confusion rather than upholding it or offering clarity to American industry leaders. Under Chair Gensler’s leadership, the agency seems focused on causing chaos – regardless of the consequences for US innovation and technology.

On Thursday, the CEO announced their plans to significantly impact the Securities and Exchange Commission (SEC) with their recent action in the case, aiming to bring an end to the SEC’s regulatory strategy through enforcement actions.

Previously, Garlinghouse argued that instead of bringing clarity to the industry, the SEC has been causing disorder. He contends that the SEC prioritizes enforcement over nurturing innovation among market participants.

In his comments, Garlinghouse described the SEC’s methodology as “illogical,” stating that the regulatory body’s actions have weakened its reputation and potentially harmed the investors it intends to safeguard.

Currently, XRP is being exchanged for approximately $0.5272, showing a minor decrease of 0.6% within the last 24 hours. On the other hand, both Bitcoin and Ethereum experienced a drop exceeding 2% during the same timeframe.

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2024-10-10 22:57