- The SEC has appealed against Ripple, contesting a recent court ruling.
- Ripple is contemplating a cross-appeal, arguing that the SEC’s vs. XRP lawsuit lacks merit.
- There is uncertainty regarding the specific elements of the Ripple case that the SEC intends to challenge.
The US Securities and Exchange Commission (SEC) has appealed the recent decision in the Ripple case. This agency has filed a notice with the Second Circuit Court of Appeals on October 7. This notice was highlighted by @James K. Filan, the defense lawyer’s tweet post on the X platform.
It followed the July 2023 ruling that Ripple’s institutional XRP sales violated federal securities laws.
Ripple’s Chief Legal Officer, Stuart Alderoty, criticized the SEC’s appeal as part of its ongoing legal aggression. He described the appeal to the XRP lawsuit as baseless and disappointing.
He further believes this step is a complete embarrassment to the U.S. SEC. Either way, the XRP lawsuit and the latest SEC appeal are irrational and deluded.
“(2) Instead of faithfully applying the law, this agency, under this Chair, continues to engage in litigation warfare against the industry. We are evaluating whether to file a cross appeal. Either way, the SEC’s lawsuit has been irrational and misguided from the start, and we’re ready to prove that yet again in the appellate court (once again taking the lead for the industry)”
He mentioned that Ripple might consider a cross-appeal. Ripple’s CEO, Brad Garlinghouse, and other executives have been vocal about their willingness to continue the legal battle. Everyone related to Ripple has expressed their readiness to persist in court.
Ripple CEO Defends XRP Status As Non-Security Asset On X, Amid SEC Appeal
The SEC’s arguments for appealing the Ripple case to the US Court of Appeals remain unclear. The agency might focus on the July 2023 decision regarding Ripple’s programmatic sales or the August 7 final judgment on penalties.
Many experts suggest the SEC appeal could target one or both areas, as indicated in their notice of appeal. This mentioned the August 7 judgment date.
The SEC has faced criticism for its vague appeal objectives, raising questions about its strategy. Ripple maintains that the court’s ruling supports the view that XRP is not a security for programmatic sales.
To this fact, Ripple CEO Brad Garlinghouse criticized SEC Chair Gary Gensler and the SEC on the X platform. Garlinghouse stated that if the SEC was rational enough, it would have led them to accept their loss and move on. As Ripple and the rule of law had already prevailed.
Additionally, Brad Garlinghouse believes the SEC appeal highlighted its past and recent actions. Those actions have harmed its reputation and credibility rather than protecting investors.
He vowed to continue fighting, asserting that XRP is legally a non-security asset and expressing frustration with the appeal.
After The SEC Went Forward With Appeal, XRP Price Fell
Following the SEC’s appeal, the XRP price dropped over 15% to $0.5228. It had erased September’s gains when it had stabilized at $0.60 and briefly surged to $0.65.
The broader market downturn and altcoin selloff contributed to this decline. Despite this, Ripple Laboratories’ management remains confident in its legal standing. It continues to reassure investors.
Technical analysis indicates that the XRP price is currently in a bearish trend and could see further declines if the $0.50 support level fails. As Q4 begins, XRP’s price has fallen below the 20-day, 50-day, and 200-day EMAs, signaling a strong downtrend.
Derivatives Data | Source: Coinglass
Indicators suggest that bearish sentiment is prevailing, potentially leading to more price drops. This week, the XRP total liquidations chart and funding rate have shown increased bearish activity.
The significant bearish pressure has resulted in a spike in derivatives volume to $4.91 Billion. This reflects a massive selloff as cautious traders exited to secure their gains.
Why the U.S. SEC Faces Criticism
Ripple’s legal team is gearing up for the next phase of their lawsuit as the SEC persists with its case. Chief Legal Officer Stuart Alderoty noted that the SEC appeal was anticipated. This indicated that Ripple was preparing for another round in court.
Ripple’s executives believe the SEC’s case is weak, with Alderoty pointing out that the court found no evidence of fraud or financial loss.
(1) The SEC’s decision to appeal is disappointing, but not surprising. This just prolongs what’s already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.
Ripple remains steadfast in defending its business practices and the legal status of XRP. The upcoming appeals in the court will be crucial in determining the outcome of this legal battle.
The ongoing legal conflict between Ripple and the SEC has garnered significant attention. This could happen as its resolution could have major implications for the entire cryptocurrency market.
Ripple’s management continues challenging the SEC’s approach, emphasizing its commitment to establishing a clear legal framework for XRP.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
