On October 2, 2024, the United States Securities and Exchange Commission (SEC) filed an appeal in its lawsuit involving Ripple, XRP’s leading distributor. The regulatory body appeal falls within the appeal window, with October 7 as the deadline. In addition, the appeal notice appeared in James K. Filan’s latest tweet, underscoring the authenticity of the notice, which could negatively impact XRP’s price.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The @SECGov has filed a Notice of Appeal of Judge Torres’s Ruling. pic.twitter.com/j8bLIZQ5LT
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 2, 2024
It is worth noting that the court battle between Ripple and the SEC dates back to December 2020. Consequently, both entities have attended several court hearings with little progress. While Ripple has scored significant victories against the SEC, the legal dispute might as well have taken a new turn with the regulatory body’s recent decision.
SEC’s Latest Appeal Details
The SEC’s recent appeal was at the Second Circuit Court of Appeals. Interestingly, the filing content aims to challenge the court’s previous rulings, particularly the 2023 pronouncement that declared an aspect of XRP sales non-security transactions. Contrary to the court’s decision, the SEC faulted the verdict, citing inconsistency with prevailing security laws.
According to the SEC, XRP sales tick all boxes required to qualify the entities as security assets. Hence, it argues that rulings must align with standards, irrespective of the kind of transaction.
Ripple CEO Reacts
As expected, Brad Garlinghouse, Chief Executive Officer (CEO) at Ripple, slammed the SEC’s appeal decision. Per the CEO, prolonging the lawsuit has corrupted the regulatory body’s image and reputation. Garlinghouse’s tweet read thus: “ If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.”
Additionally, the CEO noted that he remains committed to fighting for a just cause in the court. “XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse added.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
