Ripple Vs SEC: Ripple Considers Cross-Appeal; CLO Questions Timing of SEC Enforcement Director’s Resignation
Anjali Belgaumkar3 Oct 20242 min read
The SEC has filed an appeal against Ripple, causing a stir in the XRP community. This appeal comes amid Ripple’s ongoing legal battle with the SEC regarding whether XRP is a security. Following the news, XRP’s price plummeted nearly 10%, reflecting investor concerns over the potential for a delayed legal process.
The SEC aims to challenge some earlier favorable rulings for Ripple, which has led to mixed sentiments among traders. Ripple’s Chief Legal Officer, Stuart Alderoty, has stated that Ripple is considering a cross-appeal. This could involve challenging Judge Torres’ ruling on institutional sales or the $125 million penalty imposed. Both appeals would be handled together in a single Second Circuit case.
If Ripple decides to proceed with the cross-appeal, they have 14 days to file, starting tomorrow. Alderoty expressed disappointment over the SEC’s decision to appeal but noted that it wasn’t unexpected. He said that the court had already rejected the SEC’s claims that Ripple acted recklessly, and there were no allegations of fraud or evidence of victims or losses.
He wrote,
“We are evaluating whether to file a cross appeal. Either way, the SEC’s lawsuit has been irrational and misguided from the start, and we’re ready to prove that yet again in the appellate court (once again taking the lead for the industry)”
Alderoty criticized the SEC, stating that instead of properly applying the law, the agency—under its current leadership continues to engage in “litigation warfare” against the crypto industry. Ripple is evaluating its options for the cross-appeal but remains confident that the SEC’s lawsuit has been misguided from the beginning. Ripple is prepared to lead the fight in the appellate court once again for the entire industry.
Interestingly, the SEC’s Enforcement Director resigned about an hour before the SEC’s appeal announcement, raising eyebrows about the timing of the resignation.
