Ripple: First Details on the Appeal Process with the Securities and Exchange Commission

The price curve of Ripple (XRP) was notable for its zigzag behavior on October 17th. There were rumors that the US Securities and Exchange Commission (SEC) might have missed a legal deadline. But no – Ripple and XRP are going to court again.

Ripple (XRP) surprised everyone for a short time on Thursday, October 17th, with a monthly high of just over $0.56 – but the slight gains have already evaporated. The reason for the temporary price jump of XRP was to be found on X (formerly Twitter). Parts of the Ripple community believed that the US Securities and Exchange Commission (SEC) had missed a crucial deadline in its appeal proceedings regarding XRP. This was apparently false news, because the always soberly observant lawyer James Filan has published the SEC’s brief here and has no doubts about the timing.

So, almost at the last minute, the SEC has outlined which parts of the previous rulings on Ripple and XRP it is challenging and wants to hear from the Court of Appeals again (“de novo”). This also affects Ripple CEO Brad Garlinghouse and co-founder Christian Larsen, who were pleased to receive an “acquittal” after the first XRP ruling in summer 2023. The SEC wants to try again to prove that Ripple, Garlinghouse and Larsen violated US securities laws.

Ripple lawyer Alderoty is confident of victory for XRP

However, the authority seems to accept that XRP trading on secondary markets such as crypto exchanges does not fall under its jurisdiction. It is now contesting the fact that the accused offered and sold XRP directly, sometimes for consideration that did not consist of cash.

Ripple’s chief legal counsel Stuart Alderoty says on X that the previous ruling “XRP is not a security” is not being questioned by the SEC. However, in its appeal letter, the SEC refers to the legal situation regarding securities, and attention will have to be paid to details here in the course of the proceedings.

Ripple itself has also filed a follow-up appeal and still has a few days to fill it in. Alderoty calls on people to stay tuned and study Ripple’s updated position on XRP next week.

Conclusion: Will the legal battle between SEC and Ripple (XRP) never end?

Ripple is undoubtedly going into the next round of the legal dispute with the SEC with the wind in its sails, the first two rulings were largely positive for XRP. But “de novo” also means that a new, higher court is now coming into play and new evidence and arguments can be presented.

Ripple will probably secretly hope that there will be a change at the top of the SEC after the US presidential election in November and that the current boss Gary Gensler, who presents himself as a staunch opponent of crypto, will be replaced. Then the appeal proceedings concerning XRP and Ripple could be called off or shortened with an out-of-court settlement.

Ripple has had to deal with the process for almost four years and use valuable resources in the process. CEO Garlinghouse actually wants to finally give the go-ahead for the Ripple stablecoin RLUSD and not always have to deal with the past.

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(Featured image by vjkombajn via Pixabay)

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