- Ripple will submit its pre-appeal statement this Thursday, challenging a July 2023 ruling.
- The SEC also filed an appeal, leading Ripple to respond in its defense of XRP’s legal status.
- Ripple’s legal team remains confident but notes the case’s outcome will depend on the assigned judges.
Ripple Labs is expected to file its pre-appeal statement on Thursday, further escalating its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).
The blockchain company is appealing the portion of the July 2023 ruling that recognized its institutional sales of XRP as securities. This filing, known as Form C, is a critical step as Ripple seeks to overturn part of that decision.
The SEC had earlier filed its appeal regarding the same ruling, prompting Ripple to take action in response. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed confidence in the upcoming appeal, suggesting the case could be expanded in Ripple’s favor.
He emphasized that while predicting outcomes is challenging, he remains optimistic about Ripple’s chances in the Second Circuit.
The legal case, which has drawn significant attention in the crypto and financial sectors, hinges on whether XRP, Ripple’s native cryptocurrency, should be classified as a security.
A prior ruling by Judge Analisa Torres had already declared that Ripple’s programmatic sales of XRP did not constitute the sale of securities. However, the SEC also aims to challenge this aspect of the ruling.
As Ripple prepares to file, legal experts have noted that the case’s outcome will largely depend on the panel of judges assigned to the appeal. Attorney Fred Rispoli has stated that the judges presiding over the case will likely shape the decision.
Meanwhile, Alderoty pointed out that the SEC might face difficulties in obtaining a favorable outcome, given the specific circumstances of the appeal.
In its pre-appeal filing, the SEC avoided directly challenging the legal status of XRP. This suggests the regulator may focus on other aspects of the ruling, which could shift the case’s trajectory.
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