Ripple’s Chief Legal Officer confirmed that the U.S. Securities and Exchange Commission (SEC) has not appealed the court’s ruling classifying XRP as a non-security.
This statement follows the SEC’s filing of a Form C civil appeal. Legal representatives of Ripple have acknowledged that documents have been submitted to the Court of Appeals.
“No surprises here — the Court’s ruling that ‘XRP is not a security’ is NOT being appealed. That decision stands as the law of the land,” stated Ripple’s legal chief. Ripple is also preparing to file its Form C next week.
Form C, known as the “Civil Appeal Pre-Argument Statement,” outlines the SEC’s intention to appeal specific legal decisions related to Ripple’s case. The SEC aims to reassess the application of the law regarding a prior summary judgment, focusing on the legality of XRP sales on exchanges and personal sales by Ripple’s executives.
Ripple plans to file a counter-appeal regarding institutional sales, with both sides anticipating a protracted legal process that could redefine the classification and regulation of digital assets. Ripple’s legal team emphasizes watching for the Form C filing to be made this week.
Market Response to XRP Developments
In light of recent updates, XRP’s price remains stable, having increased by 1.74% over the past week, currently trading at $0.5468. Overall, the cryptocurrency market saw a modest growth of 0.59%, with total market capitalization reaching $2.36 trillion in the last 24 hours.
Ongoing SEC and Ripple Legal Battles Expected to Continue
Ripple’s legal chief indicated that the ongoing case could extend into July 2025. During discussions, he mentioned that Ripple will submit a Form C outlining arguments for its counter-appeal. The SEC will have 90 days to submit an opening brief, which is anticipated to be thorough and comprehensive.
“Both parties will agree on a briefing schedule, with the SEC expected to take the full 90 days to present its arguments. Ripple will then respond accordingly,” stated Ripple’s legal representative.
Ripple’s IPO Plans Affected by SEC Actions
Ripple’s CEO recently shared insights regarding the company’s stance on a potential IPO, emphasizing that the SEC’s current position deters such plans. He remarked that an IPO is not a priority for Ripple and highlighted the challenges posed by the SEC’s regulation of the market.
Despite industry challenges, the CEO expressed optimism for the crypto market’s future, citing evolving government positions and interest from institutional investors. He acknowledged that a favorable regulatory environment is critical for any potential stock market entry, yet reaffirmed Ripple’s strong financial status, allowing the company to sustain its operations without pursuing an IPO.
The Origin of the SEC and Ripple Dispute
The legal saga between the SEC and Ripple began in December 2020 when the SEC filed a lawsuit against Ripple Labs and its founders, alleging unauthorized sales of XRP tokens, which the SEC deemed unregistered securities. The lawsuit claimed that Ripple issued billions of XRP tokens, raising over $1.3 billion without proper registration.
Ripple contends that XRP should be classified as a digital currency, akin to Bitcoin and Ethereum, which the SEC does not categorize as securities. The court ruled in July 2023 that selling XRP to retail investors does not constitute a security transaction, although questions linger regarding institutional purchases made under preliminary agreements.
