The case between the Securities and Exchange Commission (SEC) and Ripple seems far from over. While the SEC decided to appeal the court decision that was taken during the summer against Ripple, the latter decided to counterattack.
The SEC appeals, Ripple immediately counterattacks
New twist in the case between the Securities and Exchange Commission (SEC) and Ripple. While last week, the American financial watchdog appealed the judgment rendered in August against the crypto company, the latter decided not to let it happen.
Indeed, Ripple filed a notice of cross-appeal with the United States Court of Appeals for the Second Circuit on Thursday where appeals can be made.
🔎 Everything you need to know about Ripple, the company behind the XRP cryptocurrency
The notice of cross-appeal may be filed by a respondent if the entity against whom it is opposed decides to appeal a court decision against it. In this way, he can assert his own claims and potentially obtain a judgment that is more favorable to it than that rendered at first instance.
On X, Stuart Alderoty, legal director of Ripple, commented on the action brought by the group :
The SEC lost on all key points, which is why they appealed. Today, Ripple filed a cross-appeal to ensure nothing is left on the tableincluding the argument that there cannot be an “investment contract” without essential rights and obligations being mentioned in that contract.
The SEC lost on all key points—that's why they appealed. Today, Ripple filed a cross-appeal to ensure nothing's left on the table, including the argument that there can't be an “investment contract” without there being essential rights and obligations found in a contract.
— Stuart Alderoty (@s_alderoty) October 10, 2024
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A case that has lasted for almost 4 years
In 2020, the Securities and Exchange Commission filed a complaint against Ripple, accusing him of obtaining $1.3 billion from the sale of XRP, which the agency said was not registered. After several years of procedures, the SEC experienced 2 setbacks in this matter.
Initially, in 2023, Judge Analisa Torres refused to recognize the sale of XRP on the secondary market as an unregistered security sale. In this regard, the regulator had attempted to obtain an interlocutory appeal so that this decision could be reviewed, but again, the procedure was refused.
Last August, history seemed to repeat itself when Analisa Torres decided to only fine Ripple $125 million, a far cry from the $2 billion initially claimed by the SEC.
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It was after this new disappointment that the SEC decided, on October 2, to appeal this decision to the United States Court of Appeals for the Second Circuit. Stuart Alderoty then spoke, considering this decision disappointing, but not surprisingsuggesting that Ripple had prepared for this eventuality.
As the company's legal director explains, “ SEC says it will not appeal initial ruling that XRP itself is not a security ». Thus, only the 2nd judgment is now at the center of the debates.
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Source : Short Listener
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