The ongoing legal showdown between Ripple vs. SEC – Judge’s Ruling Paves Way For $125M Fine Amid 50% Market Uncertainty!
Labs and the U.S. Securities and Exchange Commission (SEC) has taken another dramatic turn. Ripple’s Chief Legal Officer, Stuart Alderoty, voiced his frustration after the SEC filed a notice of appeal, reigniting tensions in the high-profile XRP lawsuit. With Ripple now contemplating a cross-appeal, the cryptocurrency world watches closely as the battle over XRP’s legal status deepens.
Ripple’s Potential Cross-Appeal – A Broader Legal Fight?
Ripple has until October 18 to decide whether it will challenge aspects of Judge Analisa Torres’ previous rulings. Specifically, Ripple could target the court’s finding that XRP sales to institutional investors violated securities laws or appeal the hefty $125 million fine imposed in August. According to Fox journalist Eleanor Terrett, these could be focal points of Ripple’s cross-appeal as the case heads to the U.S. Court of Appeals for the Second Circuit.
In a recent post on X (formerly Twitter), Alderoty didn’t mince words, calling the SEC’s litigation approach an “embarrassment” to the agency. He emphasized that the court had already dismissed allegations of fraud, negligence, and harm to investors. His remarks reflect Ripple’s continued commitment to defending itself, as well as its broader stance in supporting the cryptocurrency industry against regulatory overreach.
SEC’s Appeal Sparks Further Outrage
The SEC’s appeal, filed just days before its October 7 deadline, aims to overturn parts of Judge Torres’ July 2023 ruling. That decision had a mixed outcome: while XRP’s programmatic sales on exchanges were not classified as securities, sales to institutional investors were found to violate securities laws. This distinction continues to shape Ripple’s legal strategy as it weighs its next move.
Ripple CEO Brad Garlinghouse also expressed frustration, accusing the SEC of wasting taxpayer money on a “losing fight.” In a fiery statement, Garlinghouse pointed out that despite the appeal, the court’s ruling on XRP’s non-security status in programmatic sales remains intact. “I’m not surprised. I’m pissed,” he declared, underscoring Ripple’s belief that the SEC has caused more harm to investors than it has protected.
Alderoty also highlighted the sudden resignation of Gurbir Grewal, the SEC’s Director of the Division of Enforcement, who stepped down just an hour before the SEC’s appeal was filed. Grewal’s departure raises fresh questions about the SEC’s leadership, especially as Chair Gary Gensler faces increasing criticism over his agency’s handling of cryptocurrency regulation. Both Alderoty and Garlinghouse have accused the SEC of acting in bad faith throughout the legal proceedings, adding fuel to speculations about the future direction of the agency’s enforcement policies.
Also Read: Ripple vs. SEC – Judge’s Ruling Paves Way For $125M Fine Amid 50% Market Uncertainty!
XRP Price Plummets Amid Appeal
In the immediate aftermath of the SEC’s appeal, XRP’s price took a significant hit, dropping over 10%. At press time, the token was trading at $0.5331, an 11% decline from its 24-hour high. Despite this dip, some market commentators remain optimistic about XRP’s long-term prospects. Crypto analyst CredibleCrypto pointed to Bitwise’s recent filing for an XRP exchange-traded fund (ETF) as a signal of growing institutional interest. He suggested that, despite the legal uncertainty, XRP could be the next cryptocurrency to receive ETF approval after Bitcoin and Ethereum.
As Ripple gears up for its potential cross-appeal and the SEC presses forward with its case, the legal drama surrounding XRP shows no signs of slowing down. With crucial decisions looming and the broader crypto market watching closely, the outcome of this lawsuit could have lasting implications not only for Ripple but for the future of cryptocurrency regulation in the U.S.
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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