Key Takeaways
- SEC filed a motion of appeal in the Ripple lawsuit just days before the final deadline.
- Ripple top brass called out the SEC’s intentions behind the appeal.
- Ripple executives are confident of taking on the agency one more time.
The Securities and Exchange Commission (SEC) has thrown a curveball into the XRP saga, filing an appeal in the high-profile case just days before the deadline.
For many in the cryptocurrency community, this latest twist is a bitter pill to swallow, sparking widespread disappointment and frustration.
Ripple’s top executives, meanwhile, are working overtime to calm the nerves of their loyal supporters, insisting that they’re more than ready to take on the SEC and come out on top.
Ripple to Cross-Appeal?
As the dust settles on the SEC’s surprise appeal, Ripple is weighing its options—and considering a cross-appeal of its own.
Stuart Alderoty, the company’s chief legal officer, expressed a mix of disappointment and defiance, characterizing the SEC’s move as “disappointing but unsurprising.”
Ripple may challenge Judge Torres’ ruling, just as the SEC is doing. If it does, both appeals would be bundled together into a single Second Circuit case—but Ripple would need to act fast, with just 14 days to file its cross-appeal.
Alderoty took to Twitter to share his thoughts on the SEC’s motives, hinting that the regulator’s appeal was driven by a desire to prolong the case and stifle Ripple’s growth in the U.S.
Others in the Ripple community are equally skeptical. They point out that the court has already ruled that programmatic sales of XRP are not securities, so what’s the SEC really hoping to achieve by appealing?
Ripple vs SEC Could Drag Until 2026
The SEC’s appeal could potentially drag out the court battle until 2026.
Ripple CEO Brad Garlinghouse, however, is undeterred. He labeled the appeal meritless and a waste of taxpayer dollars. “We’ll continue to fight for as long as it takes,” he vows.
The SEC’s appeal is notable for its lack of specificity—it didn’t indicate which of the two XRP rulings it plans to contest.
John Deaton, a lawyer-turned-politician who’s been closely following the case, believes the SEC will zero in on the August ruling, citing the agency’s own admission that not all crypto tokens are securities.
Garlinghouse concurs, recalling the SEC’s failed bid to file an interlocutory appeal after the judge ruled that retail sales of XRP weren’t securities.
The timing of the appeal is also noteworthy, coming on the same day that the SEC’s enforcement director resigned from his post.
As the legal saga continues, one thing is certain: Ripple is gearing up for a long and costly fight.
The Road Ahead
Following the August verdict, Ripple’s fortunes had begun to shift in the U.S.
Grayscale filed for an XRP trust in September, and just yesterday, Bitwise submitted a proposal for a spot XRP exchange-traded fund. XRP enthusiasts were optimistic that the lawsuit’s conclusion would finally allow the digital token to regain its footing after four years of turmoil.
However, the SEC’s appeal has thrown a wrench in the works, pushing the court battle into the secondary circuit court for at least another 18 months. The stakes are high, as the appeal’s outcome could have far-reaching implications for the broader crypto industry.
If the SEC appeal overturns the favourable aspects of Ripple’s ruling, it could mean that many other cryptocurrencies and blockchain projects may face stricter regulation, potentially being classified as securities.
On the contrary, if Ripple wins the appeal, it would strengthen the case for more favorable treatment of crypto assets like XRP.
Clear guidelines for token sales and trading platforms could follow, benefiting projects like Ethereum, Solana, and other altcoins that have faced scrutiny from the SEC.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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