Ripple Plans ‘Cross-Appeal’ for SEC Case

Ripple Labs has announced that it will file a cross-appeal in its ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC), part of its effort to maintain its legal defenses as the SEC’s own appeal in the case moves through the appeals court.

The SEC filed an appeal earlier this month in the long-running case that the regulator first filed in December 2020. Ripple’s cross-appeal aims to ensure that the company maintains its arguments.

Stuart Alderoty, the company’s chief legal officer, said: “We do this to ensure that we leave nothing unspoken on the table, including the argument that there cannot be an investment contract without the fundamental rights and obligations inherent in a contract.”

District Judge Analisa Torres ruled in July 2023 that Ripple’s programmatic sales of XRP to exchanges and selling the token to retail customers did not violate federal securities laws. According to the decision, XRP is not considered a security.

The SEC’s filing last week indicates it will present a more comprehensive argument. Alderoty reports that both sides must fill out a form laying out a “high-level description” of their arguments in the coming weeks, but neither the regulator nor the company will go into specifics until opening statements are filed.

According to Alderoty’s statement, the SEC file is expected to arrive by January, and Ripple’s statement is expected to be added later.