Ripple (XRP) Is Not a Security, Court Ruling Stands as the Law of the Land

Ripple's chief legal officer, Stuart Alderoty, confirmed that the U.S. Securities and Exchange Commission has not appealed the court's ruling that XRP is not a security.

The U.S. Securities and Exchange Commission has not filed an appeal of the court's ruling that XRP is not a security, according to Ripple's chief legal officer.

The comment comes after news that the SEC filed a Form C civil appeal. However, Ripple attorney James K. Filan confirmed that the SEC did indeed file the paperwork with the Court of Appeals.

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. https://t.co/m9molUGSBv

Form C, also known as the “Civil Appeal Pre-Argument Statement,” is a document filed by the SEC to indicate its intent to appeal certain legal decisions made in a case. In the Ripple case, the SEC is asking the court to review the application of the law in a previous summary judgment. This means that the judge will be analyzing the legal aspects of the case, rather than the final decision itself.

In its filing, the regulator is asking the court to reconsider its decision on the sales of Ripple (XRP) tokens on exchanges, as well as the personal sales of the token by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.

Meanwhile, Ripple is set to file its own cross-appeal to challenge the ruling on institutional sales, and both sides are preparing for a lengthy process that could ultimately shape the classification and regulation of digital assets in the future. Alderoty encourages keeping an eye out for Ripple's Form C filing this week.

XRP price: what happened?

Amid the latest developments in the case, the price of XRP is showing minimal movement. The asset has seen a slight increase of 1.74% over the past week. At the time of writing, XRP is valued at $0.5468.

The token has contributed to the overall growth of the crypto market, which went up by 0.59%, reaching a capitalization of $2.36 trillion in 24 hours.

SEC, Ripple legal battle to continue into next year

According to Alderoty, the case could extend into July 2025. Speaking to Fox Business correspondent Eleanor Terrett, he noted that the crypto project will also be filing a Form C, outlining arguments for a counter-appeal.

The SEC will have 90 days to file an opening brief, and Alderoty anticipates that the regulator will use this time to prepare the most comprehensive presentation of its arguments.

“Both parties will then agree on a briefing schedule and the SEC then has up to 90 days to file its first brief. Alderoty says he expects them to take the full 90 days. That opening brief will be a full recitation of all the legal arguments that the SEC will be making. Ripple will file a response and then its own brief. The full briefing process, according to Alderoty, will go through July 2025.”

Ripple to not conduct IPO due to SEC

Previously, Garlinghouse commented on the possibility of the company entering the stock market, highlighting the stance of the SEC and Ripple's financial stability. When asked about a potential initial public offering (IPO) following the expected clarity in regulatory standards, the Ripple CEO noted that it is not a primary goal for the company.

“An IPO has not been a high priority for us and part of that is because the SEC is not our friend. I’m not really popular there. They don’t have pictures of me in the halls of the SEC unless they have dart boards on them.”

Garlinghouse also shared his hopes for the future of the crypto market into 2025. Despite the current challenges in the industry, he expressed optimism, pointing to the shifting stance of the U.S. government and the increasing interest from major players like BlackRock, indicating growing attention from institutional investors in blockchain technologies and their capabilities.

He added that while an improvement in the regulatory environment would be crucial for entering the stock exchange, Ripple has a strong financial foundation, allowing the company to continue its projects even without an IPO.

A brief history: SEC vs. Ripple begins

The SEC filed a lawsuit against Ripple Labs Inc. and its co-founders, Christian Larson and Jed McCaleb, in December 2020. The lawsuit centered on allegations that they conducted illicit sales of an unspecified number of XRP tokens, which the SEC classified as unregistered securities.

According to the SEC, Ripple sold billions of XRP tokens and raised over $1.3 billion in sales without the appropriate registration collateral. The SEC maintained that the XRP token should have been registered as a security. The SEC also highlighted that XRP creates an expectation of profit for investors, meeting the criteria for classification as a security.

In response, Ripple argued that XRP should not be considered a security but rather a

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