The US Securities and Exchange Commission (SEC) filed its appeal on Thursday regarding the Ripple (XRP) case. This high-profile case continues to draw significant attention from the community, as its outcome could have far-reaching implications.
However, there has been a minimal impact on the price of XRP.
SEC Files Appeal In Longstanding Ripple (XRP) Case
According to a Thursday filing with the US Court of Appeal for the Second Circuit, the SEC filed Form C in the Ripple case, effectively appealing the August 7, 2024 final judgment. This determination enjoined Ripple from further violations of Section 5 of the Securities Act of 1933 and imposed a civil penalty of approximately $125 million on Ripple.
Read more: Everything You Need To Know About Ripple vs. SEC.
The regulator wants the court of appeal to review whether Judge Analisa Torres’ landmark decision on July 13 in partial favor of XRP was erroneous. Ripple executives Brad Garlinghouse and Chris Larsen’s’ personal offers and sales of XRP are also brought into question. The US SEC wants all these issues reviewed “de novo,” which means from the beginning.
Ripple lawyer James K. Filan confirmed the filing, which is expected to prolong the already lengthy and complex legal battle.
As BeInCrypto reported ahead of the latest appeal, several legal experts recently weighed in on the matter. They argued that Judge Torres’ fact-specific ruling weakened the SEC’s grounds for appealing programmatic sales.
Notwithstanding, the Second Circuit’s future decision could also affect Ripple’s operations. For now, however, the overhang of this case is already stalling developments in the broader market, including prospects of an XRP ETF.
Next Step in Ripple vs. SEC Case After Regulator’s Filing
Setting a timeline for the process, Ripple CLO Stuart Alderoty said the case could extend through July 2025. Speaking to Fox Business correspondent Eleanor Terret, Alderoty indicated that Ripple would file its own Form C, detailing arguments for its cross-appeal. This will happen seven days after the SEC’s submission, which means sometime next week.
After Ripple submits its Form C, both parties will agree on a briefing schedule. The SEC will have up to 90 days to submit its opening brief. Alderoty expressed his expectation that the SEC would utilize the full 90 days to present a comprehensive account of its legal arguments.
Ripple will subsequently file a response and its own brief, kicking off an extensive briefing process. These sequential filing processes suggest a lengthy and complex legal battle. For now, however, the XRP community awaits Ripple’s Form C.
Amidst these uncertainties, the price of XRP has been stable. In the past 24 hours, the token has been down by just 0.8%, currently trading at $0.5498.
“No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land. Stay tuned for Ripple’s Form C to be filed next week,” Alderoty indicated.
Read More: How To Buy XRP and Everything You Need To Know
Nevertheless, this ongoing legal battle transcends Ripple or XRP. It could have far-reaching implications for the industry, influencing the broader debate over crypto’s classification and regulatory status.
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