Just before a critical deadline, Ripple has submitted its Form C for a cross-appeal in the XRP lawsuit against the U.S. Securities and Exchange Commission (SEC). The document, which outlines Ripple’s Civil Appeal Pre-Argument Statement, was shared by XRP lawyer James K. Filan, sparking fresh analysis of the company’s legal strategy as the case advances in the appeal court.
Ripple’s Chief Legal Officer Clarifies Cross-Appeal Focus
Ripple’s Chief Legal Officer Stuart Alderoty shed light on the cross-appeal’s key issues, emphasizing that the lawsuit isn’t solely about whether XRP is classified as a security. According to Alderoty, the court has previously ruled that XRP, along with Bitcoin, is not a security — a point the SEC is not contesting in this appeal. Ripple’s appeal seeks to address significant legal interpretations impacting Ripple’s operations and potentially the entire crypto sector.
Alderoty pointed out that, with the case moving to the appeal court, the judge will primarily review existing records. Ripple’s legal team won’t face the intense back-and-forth seen in the original proceedings, as the SEC cannot introduce new evidence or request additional documents at this stage. Alderoty reassured the community that the most challenging part of the legal fight is likely over, allowing Ripple to focus on expanding its business despite the ongoing appeal.
Ripple’s Cross-Appeal Challenges Key Legal Issues
Ripple’s cross-appeal raises four primary issues for judicial review. The company aims to challenge the SEC’s regulatory stance and shed light on the framework applied to assess digital assets. Alderoty urged the community to stay vigilant, arguing that the SEC’s approach aims to create distractions. He noted that Ripple is prepared to engage in this next legal phase and is optimistic about achieving a favorable outcome.
As part of the appeal process, the court is expected to issue a scheduling order for briefings and to consolidate filings, including documents from the original District Court case. This organizational step under case number 24-2648 is expected to streamline proceedings, moving the legal battle toward a final decision on critical issues.
Crypto Attorney John Deaton on XRP’s Legal Status
Crypto attorney John Deaton also shared his perspective on Ripple’s cross-appeal. He stressed that there should be no lingering doubts about XRP’s legal status, referencing a recent high-profile donation from Ripple co-founder Chris Larsen to Kamala Harris’s campaign. Deaton’s comments came after the SEC’s request to delay its principal brief to January 2025, a move perceived by some as an attempt to delay inevitable scrutiny.
Deaton also criticized the SEC for its seemingly contradictory stance in the Coinbase lawsuit, where the regulator alleges that Coinbase’s business model, including XRP transfers, is illegal. Deaton pointed out that the SEC previously approved Coinbase’s IPO, signaling approval of its operations, which makes its current position against the exchange appear inconsistent.
Ripple CEO Brad Garlinghouse has also weighed in, suggesting that a major shift or “crypto reset” is on the horizon, regardless of the outcome of the U.S. elections. “I think no matter what happens, we’re going to see a reset; we’re going to see forward progress,” Garlinghouse said, signaling his optimism for future developments in the crypto industry as regulatory clarity increases.
Also Read: Ripple vs. SEC – Legal Battle Extends To 2025 As XRP Holds Steady At $0.54 With 30% Volume Drop!
As Ripple’s appeal gains momentum, it is clear the case could set precedents for digital asset regulation across the United States, potentially impacting companies operating within this evolving legal landscape. Ripple’s actions highlight the crypto industry’s drive to seek regulatory transparency, setting the stage for a long-anticipated crypto overhaul in U.S. financial regulation.
This landmark case not only carries weight for Ripple and its stakeholders but also holds broader implications for crypto exchanges, investors, and blockchain innovation across the country.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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