Ripple Labs has filed its Form C in the ongoing lawsuit with the US SEC as it wants the court to assess the case as a fresh one
Ripple and the US Securities and Exchange Commission (SEC) are back in court to continue their ongoing legal battle. In a recent development, Ripple filed a civil appeal pre-argument statement, Form C in response to the US SEC’s earlier filing.
Ripple Challenges Court’s 2023 Ruling Summary
Ripple’s filing outlines specific grounds that challenge part of the court’s ruling summary in 2023. Ripple requested the appeals court approach with a “de novo” standard. This requires the appellate court to view the case as if it were brought to the court for the first time.
Today, Ripple filed a Form C – listing the issues we plan to raise on our cross appeal. A few things to keep in mind as we move forward:
The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being… https://t.co/AmFocAnbPx
— Stuart Alderoty (@s_alderoty) October 25, 2024
A key focus of the appeal is the district court’s application of the Howey Test to Ripple’s XRP transfers. These were money invested in a common enterprise with a reasonable expectation of profits solely from Ripple’s efforts. This concerns the classification of XRP in institutional sales as securities transactions.
Another subject Ripple appealed is whether the court decision considers its lack of fair notice in its conduct. Ripple deemed the ruling a violation due to the SEC’s “inconsistent” and “deliberately vague” statements regarding the application of federal securities laws.
Furthermore, Ripple seeks to reassess the scope of the SEC’s injunction against the firm. Ripple’s Form C comes a week after the SEC filed its pre-argument statement. The regulator appealed against the ruling that retail XRP sales did not violate US federal laws on security issuance.
Ripple’s CLO Gives Clarity
Stuart Alderolty, Ripple’s Chief Legal Officer, clarified that the SEC is not appealing whether XRP is a security. He added that the judge’s ruling stands as the law of the land.
“The Appeals Court reviews the record that has already been set … and we have a great record,” Alderoty emphasized.
The CLO claims the US SEC’s overall strategy is to distract and confuse Ripple and the entire crypto industry. He further noted that Ripple’s business will continue to grow as the legal process unfolds. According to a BGECrypto report, Ripple recently received approval to operate in Dubai, enhancing the company’s Middle Eastern footprint.
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