Ripple has filed a cross-appeal in its lawsuit against the US SEC, adding a fresh twist to the long-running legal battle.
Ripple’s Chief Legal Officer has announced that the company has filed a cross-appeal in its legal case against the US Securities and Exchange Commission (SEC), marking a significant development in the ongoing dispute since December 2022.
Ripple Submits Cross-Appeal in SEC Case
In a post on X, Stuart Alderoty revealed that Ripple has filed a cross-appeal against the SEC, stating they did so to ensure that “nothing’s left on the table,” particularly the argument that an investment contract cannot exist without key rights and obligations.
Alderoty pointed out that the SEC has already confirmed they will not appeal the ruling that XRP is not a security, so Ripple’s cross-appeal won’t focus on that aspect.
He emphasized that this decision remains the law, and any appeals on other matters won’t alter that fact.
Additionally, Alderoty mentioned that the SEC had previously attempted to appeal Judge Analisa Torres’ rulings, which determined that Ripple’s XRP sales on exchanges and other distributions were not securities, but that effort was unsuccessful.
He anticipates the SEC may try again, but expressed confidence that the Commission would lose on both issues.
Alderoty concluded by stating, “We look forward to the federal court of appeals finally putting a stake in the heart of Gensler’s misguided attack on our industry.”
This cross-appeal is expected to significantly strengthen Ripple’s position in its legal battle against the SEC.
Legal expert Fred Rispoli previously remarked that it would have been unwise for Ripple not to file a cross-appeal.
He expressed confidence that Ripple could defeat the SEC if the judicial panel remains fairly balanced.
Cross-Appeal Could End SEC’s Enforcement Actions
Ripple CEO Brad Garlinghouse stated on X that the company is using the cross-appeal to bring an end to the SEC’s “regulation-by-enforcement” approach.
He highlighted that Ripple led the industry during the initial court phase and intends to maintain that leadership in the appeals process.
Garlinghouse criticized the SEC’s decision to file an appeal, arguing that it shows the Commission, under Chair Gary Gensler, is not focused on applying the law properly or providing clarity to the US crypto industry.
He added, “Under Chair Gensler, the agency is only interested in creating havoc – US innovation and technology be damned.”
The SEC’s challenges are not limited to Ripple. Crypto exchange Crypto.com recently sued the SEC after receiving a Wells Notice.
Furthermore, SEC Commissioner Mark Uyeda acknowledged the agency’s crypto enforcement strategy has been a “disaster.”
He said,”We have been sending this ‘policy through enforcement,’ we have done nothing to provide guidance on it, and as a result, this has been achieved by the courts. And different courts have ruled different ways.”
