Ripples Battle Intensifies: SEC Appeals Court Decision
- The SEC is appealing the ruling in the Ripple case, arguing it conflicts with Supreme Court precedent.
- Ripples legal team and CEO express frustration, calling the appeal irrational and misguided.
- Ripple claims the case has damaged the SECs 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 courts 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.
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
Ripples Chief Legal Officer, Stuart Alderoty, has taken to X in light of the SECs 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 companys 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 companys readiness to face the SEC again in court.
Ripple CEO Criticizes SECs 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 companys 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 Emmers Crypto Vision: What Lies Ahead for 2025 U.S. Regulation
Read more: https://www.tronweekly.com/ripples-battle-sec-appeals-court-decision/
Text source: TronWeekly
