Ripple vs SEC Battle Extends to the End of 2025 as the US Securities and Exchange Commission (SEC) Decides to Appeal District Court Rulings
- Linda HamiltonOriginal
- 2024-10-19 21:22:14553browse
Ripple plans to cross-appeal the arguments by the regulatory agency as it continues to threaten the crypto industry with regulation by enforcement approach.
The U.S. Securities and Exchange Commission (SEC) has filed its Form C related to appeals in the Ripple lawsuit. Form C is an appeal pre-argument statement required by the US Court of Appeals. The SEC is appealing Judge Torres’ summary judgment on whether Ripple’s XRP sales through crypto exchanges, distribution to employees and others by the firm, and XRP sales by CEO Brad Garlinghouse and Executive Chairman Chris Larsen are subject to SEC registration.
The SEC filed its notice of appeal on 15th December, 2024, following Judge Torres’ ruling on 24th November, 2024. The SEC’s Form C was filed on 2nd January, 2025, as the regulatory agency had 45 days to file its arguments after filing the notice of appeal.
However, Ripple’s lawyers have claimed that the SEC missed the deadline for filing Form C, which was 30th December, 2024. According to Ripple’s lawyers, the SEC backdated the document to avoid missing the deadline.
The SEC is also appealing the summary judgment on whether Ripple’s XRP sales are a "continuous offering" and whether the SEC is barred from arguing that XRP is a security because it previously stated that it was not.
The SEC has also included arguments on whether the lower court erred in striking SEC expert testimony on the Howey test, the definition of "investment contract," and the XRP market.
Notably, Ripple is planning to cross-appeal the arguments by the SEC, which could further delay the resolution of the case.
The U.S. SEC v Ripple Labs lawsuit, which began in December 2020, has been closely watched by the crypto industry. The SEC alleges that Ripple and its executives sold XRP without registering it as a security, while Ripple maintains that XRP is a decentralized digital asset and not a security.
The SEC has been cracking down on unregistered cryptocurrency offerings in recent years, and the Ripple case is seen as a key test of the agency's authority over the digital asset market.
After recent losses in the lawsuit, Binance, and other legal battles, the SEC has begun attacking the crypto market on secondary sales, prompting crypto executives like Stuart Alderoty to criticize the SEC and Gensler for their approach and overreach.
The secondary market for this ticket doesn’t make it a security—just like trading crypto doesn’t. Not every market is a securities market. pic.twitter.com/qTGlyIHrul
— Stuart Alderoty (@s_alderoty) October 19, 2024
Meanwhile, XRP traders are bracing for impact as the price moves sideways this week. After a 10% gain last week, XRP price is up just 1% this week. The cryptocurrency is currently trading at $0.54, with a 24-hour low and high of $0.542 and $0.550, respectively. Moreover, the trading volume has decreased further by 30% in the last 24 hours, indicating a lack of interest among traders.
According to CoinGape’s XRP price analysis, the cryptocurrency is expected to continue trading sideways with a bullish bias. If XRP price breaks above $0.55, it could rally further to hit $0.6. On the other hand, a drop below $0.53 could lead to a deeper correction.
Some experts believe that the appeals will continue to impact XRP price for a few years, as the legal battle is expected to drag on in higher courts. However, recent price predictions by analysts and developments by the company suggest otherwise.
Recently, Ripple has introduced crypto custody for banks and fintechs, and the company is close to launching its RLUSD stablecoin, with several partnerships for XRP Ledger adoption. CoinGape’s XRP price analysis shows that the price can hit $1 after RLUSD’s launch.
The crypto industry is also optimistic about the U.S. SEC approving an XRP ETF, as companies roll out indexes and futures in regulated markets. However, Bitnomial XRP futures were challenged as the securities regulator claimed that the futures fall under the jurisdiction of both the SEC and the CFTC.
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