Ripple’s Chief Legal Officer, Stuart Alderoty, has confirmed that the U.S. Securities and Exchange Commission (SEC) has not appealed the court’s ruling that XRP is not a security. This confirmation comes in response to news that the SEC has filed a Form C civil appeal. Ripple attorney James K. Filan has also confirmed that the SEC did indeed file documents with the Court of Appeals.
Form C is a document in which the SEC expresses its intention to appeal certain legal decisions made in a case. In the Ripple case, the SEC has asked the court to review the application of the law in a previous summary judgment. This means that the judge will analyze the legal aspects of the case, not just the final decision.
In its claim, the regulator has asked the court to reconsider the decision to sell XRP tokens on exchanges, as well as the personal sales of the token by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen.
Ripple is planning to file its own cross-appeal to challenge the ruling on institutional sales, and both parties are preparing for a lengthy process that could potentially impact how digital assets are classified and regulated in the future. Alderoty has urged everyone to keep an eye on Ripple’s Form C filing this week.
Despite the ongoing legal disputes, the price of XRP has remained relatively stable, with a 1.74% increase over the past week. As of now, XRP is trading at $0.5468. The overall crypto market has also seen growth, reaching a capitalization of $2.36 trillion in 24 hours, with a 0.59% increase.
According to Alderoty, the case could continue until July 2025. He has stated that Ripple will file a Form C application outlining arguments for a counter-appeal. The SEC will have 90 days to file an opening brief, and Alderoty expects the regulator to use this time to prepare a comprehensive presentation of its arguments.
In regards to the possibility of an initial public offering (IPO), Garlinghouse has commented that Ripple will not pursue an IPO due to the SEC’s position and the financial stability of the company. He has expressed optimism about the future of the crypto market until 2025, highlighting the changing positions of the U.S. government and increased interest from institutional investors, such as BlackRock, in blockchain technologies.
Garlinghouse believes that an improvement in the regulatory environment is necessary for entering the stock exchange, but Ripple has a strong financial foundation that allows the company to continue its projects without an IPO.
The SEC filed a lawsuit against Ripple Labs Inc. and its co-founders in December 2020, accusing them of conducting unregistered sales of XRP tokens. The SEC alleged that Ripple sold billions of XRP tokens without proper registration, which the SEC considered to be unregistered securities. Ripple argued that XRP should be considered a digital currency similar to Bitcoin and Ethereum, which the SEC does not classify as securities. In July 2023, the court ruled that selling XRP to private investors does not equate to securities transactions, but the issue of large players purchasing tokens under a preliminary agreement remains unresolved.