The United States Securities and Exchange Commission (SEC) recently filed an appeal in its case against Ripple, but it did not challenge the court’s ruling that XRP is not a security.
On October 16, the SEC submitted a Form C civil appeal with a pre-argument statement, contesting certain aspects of the court’s summary judgment in favor of Ripple regarding XRP. The appeal, shared by Ripple’s defense attorney James Filan on October 17, asks the court to revisit its decisions related to XRP sales on exchanges and the personal XRP sales by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
Court Ruling on XRP’s Status Remains Unchanged
Ripple’s chief legal officer, Stuart Alderoty, responded to the SEC’s appeal on social media platform X, clarifying that the appeal does not challenge the court’s ruling that XRP is not a security. “That decision stands as the law of the land,” Alderoty stated, adding that Ripple plans to file its own Form C next week.
According to the SEC’s filing, the appeal addresses allegations that Garlinghouse and Larsen violated securities laws by selling XRP and “aided and abetted Ripple’s violations of those provisions.” The SEC questions the court’s decision to grant partial summary judgment in favor of Ripple, covering XRP sales on exchanges, personal sales by the executives, and Ripple’s XRP distributions in exchange for non-cash consideration.
“These issues are to be reviewed de novo,” the SEC stated in its appeal.
Timeline Extending to 2025
Fox Business producer Eleanor Terrett outlined the expected timeline for the appeals process. Ripple is set to file its own Form C within seven days following the SEC’s submission. Both parties will then agree on a briefing schedule, with the SEC having up to 90 days to submit its first brief. Alderoty expects the entire briefing process to continue through July 2025.
As previously reported, Judge Analisa Torres of the U.S. District Court for the Southern District of New York ruled in favor of Ripple in July 2023, declaring that XRP is not a security when sold programmatically on digital asset exchanges. In August, the court imposed a $125 million civil penalty on Ripple and prohibited further violations of the Securities Act of 1933.