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Securities and Exchange Commission (SEC)

Ripple’s Battle Intensifies: SEC Appeals Court Decision

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  • The SEC is appealing the ruling in the Ripple case, arguing it conflicts with Supreme Court precedent.  
  • Ripple’s legal team and CEO express frustration, calling the appeal irrational and misguided.  
  • Ripple claims the case has damaged the SEC’s credibility without benefiting investors.

The U.S. Securities and Exchange Commission (SEC) has appealed the decision made by the U.S. Second Circuit Court of Appeals regarding the high-profile Ripple case. The commission argues that the district court’s decision runs contrary to long-standing Supreme Court precedent and securities laws.

That tug-of-war between the SEC and Ripple has been ongoing, and it really seems that the recent move by the SEC is going to again challenge that interpretation of the court. Previously, a district court imposed a $125 million civil penalty on the company, way below the fine SEC had sought at $2 billion.

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The SEC charged the company behind XRP, one of the influential players in cryptocurrency markets, for selling unregistered securities through its token. However, the company kept arguing its innocence, claiming that XRP is not a security and it has not violated any laws.

Ripple Legal Team Slams SEC Appeal

Ripple’s Chief Legal Officer, Stuart Alderoty, has taken to X in light of the SEC’s decision to file an appeal. Alderoty criticized the agency for continuing a fight that had already lost them so much credibility.

Alderoty emphasized that the court had already discarded any suggestion of recklessness on the company’s part and underlined that no fraud had been alleged, nor were there victims.

Alderoty went on to question the timing of the appeal filed by the SEC, considering the sudden resignation of the Enforcement Director at the agency right before the announcement. At that point, Ripple was considering filing a cross-appeal, with Alderoty hinting at the company’s readiness to face the SEC again in court.

Ripple CEO Criticizes SEC’s Actions

CEO Brad Garlinghouse also expressed frustration with the decision by the SEC, terming it irrational and a poor exercise of judgment. He said the SEC had not protected investors but had only harmed its reputation.

He repeated that the court had already ruled in the company’s favor on key issues, particularly with respect to the non-security status of the XRP. With the case now back in court, Ripple leadership seems very confident of its legal standing and ready to continue the fight.

Related Reading | Tom Emmer’s Crypto Vision: What Lies Ahead for 2025 U.S. Regulation

Ripple CEO Slams SEC, Vows 100% Fight for XRP

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  • The SEC has filed an appeal contesting the decision that XRP’s programmatic sales are not securities.
  • Garlinghouse criticized the SEC for prolonging the legal battle, saying it has caused harm to investors.
  • Ripple remains confident that the court’s ruling on XRP’s non-security status will prevail.

Ripple CEO Brad Garlinghouse has expressed his frustration with the U.S. Securities and Exchange Commission’s (SEC) decision to continue its legal battle against the company. The SEC recently filed a notice of appeal, contesting a federal judge’s ruling from 2023 that favored the firm in key aspects of its case.

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On October 1, the SEC filed a notice of appeal to the Second Circuit, signaling its intent to challenge the court’s ruling in the ongoing case against Ripple. The appeal focuses on a 2023 decision by Judge Analisa Torres, which found that the firm’s programmatic sales of XRP were not securities transactions. However, the judge did rule that sales to institutional clients were securities, leading the SEC to appeal the part of the ruling related to programmatic sales.

The SEC’s appeal comes after the court rejected its previous request for an immediate appeal last year, following the judge’s final verdict in August. The final decision, considered a partial victory for both sides, set the stage for this latest legal maneuver.

Ripple CEO Reacts to SEC’s Stance

Reacting to the appeal, Garlinghouse expressed his disappointment, accusing the SEC of dragging the case unnecessarily. The Ripple CEO highlighted that the regulator’s actions have hurt U.S. investors and damaged its own credibility. According to Garlinghouse, the case has become a “losing battle” for the SEC, which continues to waste taxpayer money.

In Garlinghouse’s view, the court’s decision regarding XRP’s non-security status should stand as a victory for the industry. He emphasized that Ripple is prepared to continue the fight to protect this important ruling.

With the appeal now in motion, Ripple’s legal battle is far from over. However, Garlinghouse and his team remain optimistic that their victory will stand, benefiting not only Ripple but also the broader cryptocurrency ecosystem. The SEC has 70 days to file its appeal brief, prolonging the uncertainty for both Ripple and the crypto industry.