Ripples Form C Filing: Key Arguments in the SEC Legal Dispute
Key Takeaways:
- Ripple filed a Form C appeal, challenging aspects of a recent SEC ruling.
- The appeal addresses Ripples stance on whether XRP is a security.
- Ripple aims to clarify key securities law interpretations, impacting the broader crypto space.
In a recent turn in its ongoing legal battle with the United States Securities and Exchange Commission (SEC), Ripple Labs has filed a Form C in the United States Court of Appeals for the Second Circuit.
The filing, disclosed by Ripples Chief Legal Officer Stuart Alderoty, challenges the SECs position on XRPs classification and aims to set boundaries on how securities laws apply to digital assets.
Alderoty shared the companys intent to address key legal points on appeal, particularly the companys view that XRP itself should not be considered a security, emphasizing that the SEC is not challenging this stance directly.
In a statement on X, Alderoty underscored that this appeal marks a new phase, one he views as less contentious and less likely to produce drama, as it will focus solely on previously established evidence.
Appeal Points: Ripples Stance on Key Legal Issues
According to the companys Form C filing, the appeal raises questions central to the application of securities law. The companys argument rests on four main points, beginning with the contention that an investment contract under Section 5 of the Securities Act of 1933 must meet specific criteria.
This includes a binding contract, post-sale obligations from the company to the XRP purchaser, and a legal basis for purchasers to expect profits derived solely from the companys activities.
The company also questions the district courts application of the Howey Test, a standard from a 1946 case that defines an investment contract. They argue that its XRP transactions do not fit the tests criteria, as the sale of XRP does not guarantee profits from the companys actions alone.
The appeal also defends the companys Fair Notice Defense, claiming that it did not have adequate notice from the SEC regarding XRPs legal standing.
Legal Communitys Take on Ripples Argument
According to attorney Jeremy Hogan, a legal commentator who has followed every step of the Ripple-SEC dispute, the challenge will do some good for the broader crypto industry. As Hogan explains, if the company succeeds in arguing that an investment contract needs a legal basis for sharing profits, that would be a real delimiter on the SECs jurisdiction to regulate other digital assets.
Hogan adds that Ripples appeal concerning the specificity of the injunction could impact similar cases, as Ripple disputes a court mandate that effectively tells Ripple to follow the law.
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Read more: https://www.tronweekly.com/ripples-form-c-filing-key-arguments/
Text source: TronWeekly
