The ongoing legal battle between Ripple and the SEC has entered a critical phase, with both parties preparing their appeals. At the heart of the dispute is whether XRP should be classified as a security. Ripple maintains that its institutional sales of XRP do not fall under this category, a stance that could set a significant precedent in the cryptocurrency world.
Ripple’s CLO Discusses the Appeal Process
Ripple’s Chief Legal Officer, Stuart Alderoty, recently commented on the case’s progress at the company’s annual Swell conference. The lawsuit, which began in 2020, revolves around whether XRP is a security and whether its sales adhered to U.S. regulations. As the case moves into the appeal stage, both Ripple and the SEC have until October 16, 2024, to submit their points of contention. A final resolution could extend as far as 2026, according to industry analysts.
Ripple is expected to focus its appeal on the ruling that deemed institutional XRP sales as securities. Both sides will have an opportunity to submit their written defenses early in 2025, but a final verdict in that year appears unlikely due to the extensive legal back-and-forth expected.
Ripple’s Confident Stance in Court
Alderoty expressed confidence in Ripple’s legal position, noting that the company feels stronger in the Second Circuit Court of Appeals than it did in the lower courts. He suggested that while Ripple’s appeal may not drastically change the court’s decision, the outcome could set a crucial legal precedent for the broader crypto ecosystem. Ripple will argue that institutional XRP sales do not qualify as an “investment contract,” seeking clearer legal boundaries for future cases.
This high-profile legal battle continues to be closely watched, with Ripple aiming to define more precise legal frameworks around cryptocurrency sales, which will undoubtedly impact the wider industry.
