- The ongoing war between the SEC and Ripple is closing in on its fourth year, with both parties filing appeals in the past month.
- The appeals aren’t expected to be heard until 2025 at the earliest.
- The SEC is appealing several “losses” in the courts that saw Ripple get a smaller fine than anticipated and also ruled certain XRP sales didn’t break any laws.
- Meanwhile, Ripple is cross-appealing to continue seeking regulatory clarity and ensure their arguments are heard.
The protracted legal battle between Ripple and the SEC has been going on for nearly four years, after the US regulators first sued Ripple Labs in 2020. At this point, the case has turned into something of an UNO contest.
First, the SEC filed an appeal in October contesting a 2023 ruling that certain XRP sales did not violate securities laws. The US regulators also appealed the decision to impose a fine of US $125m (AU $185m) on Ripple – a significantly lower sum than the US $2b (AU $3b) Gensler and his lawyers were requesting.
Not to be left out, Ripple has now played its ‘Reverse’ UNO card and submitted an appeal of its own…appealing the SEC’s appeal. Kind of.
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Ripple’s Cross-Appeal to Double Down on Key Legal Arguments
The purpose of Ripple’s cross-appeal, at this point, is to ensure that their lawyers can continue making arguments in the case versus the SEC.
The team’s Chief Legal Officer, Stuart Alderoty, explained the move to CoinDesk.
We’re really doing that [filing the cross-appeal] to make sure that we leave nothing on the table, including the argument that there cannot be an investment contract without there being the essential rights and obligations found in a contract.
Stuart Alderoty, Ripple Chief Legal OfficerRipple CEO Brad Garlinghouse added his own thoughts on the matter via his social media.
Ripple Willing to “Fight that Fight” As Long as Necessary
The court of law isn’t exactly a place where things get done quickly – with most believing the SEC’s appeal won’t be finalised until January 2025, with Ripple’s coming potentially months later.
Although the continued appeal-on-appeal action may seem tiresome to many, Stuart Alderoty believes they are a necessary evil as the sector seeks regulatory clarity.
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However, Alderoty believes that the medium of a Judge is not the ideal means for the blockchain sphere to iron out its kinks – but until governments implement policy change, it’s all we’ve got.
The [US] really needs a policy solution…short of that, and while we don’t have one, it’s going to be up to the courts, and we’re willing to continue to fight that fight.
Stuart Alderoty, Ripple Chief Legal Officer
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