James K Filan, a prominent attorney, has shared the U.S. Security and Exchange Commission’s (SEC) Form C, filed for its appeal against Ripple in the long-running legal battle. Fox Business journalist Eleanor Terrett delved into the details of the filing, revealing the aspects of the case the SEC wishes to appeal.
According to Terrett’s post, the SEC’s appeal targets several key points, including Ripple’s programmatic sales of XRP on digital asset trading platforms, as well as allegations that Ripple executives Brad Garlinghouse and Chris Larsen aided and abetted these sales which the regulator dropped in late 2023. The agency also challenges Garlinghouse and Larsen’s offers and sales of XRP and Ripple’s distribution of XRP to employees and other recipients.
🚨NEW: The @SECGov has filed its Form C, detailing issues they plan to seek appeal for in the @Ripple case. Those issues are:
📌@Ripple’s programmatic sales of $XRP on digital asset trading platforms
📌@bgarlinghouse and @chrislarsensf alleged aiding and abetting of those… https://t.co/EArrDrbkBr
— Eleanor Terrett (@EleanorTerrett) October 17, 2024
What About XRP’s Security Status
Notably, the SEC is not appealing the court’s ruling that XRP is not a security. This ruling from July 2023 was a critical win for Ripple and the cryptocurrency community and will remain intact, much to the relief of Ripple’s supporters.
Ripple’s Chief Legal Officer, Stuart Alderoty, highlighted this in his response, stating, “No surprises here—once again it’s been made clear. The Court’s ruling that ‘XRP is not a security’ is NOT being appealed. That decision stands as the law of the land.”
Additionally, the SEC did not challenge the $125 million penalty imposed on Ripple. Also, the regulator did not seek to reverse Judge Analisa Torres’ decision not to grant disgorgement.
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Responses From Legal Experts
Jeremy Hogan, a prominent lawyer following the case, expressed disappointment in the SEC’s attempt to revive claims against Garlinghouse and Larsen.
“The SEC completely folded when it had the opportunity to actually try the case against Garlinghouse and Larsen in front of a jury,” he commented, calling the appeal a “chicken move.” Yet, Hogan also noted that the appeal primarily concerns financial aspects, which could affect any potential injunctions against Ripple.
Fred Rispoli, another well-respected attorney, echoed Hogan’s skepticism, pointing out that while the SEC dropped some charges, it left the door open for further legal action against Ripple’s executives.
He emphasized that the appeal would likely focus on Ripple’s programmatic sales and other distributions of XRP, however, he left open the possibility that the SEC could still challenge other rulings.
Interestingly, Rispoli also pointed out that the SEC did not mention the court’s decision not to order disgorgement, an oversight he suggests may be an error on the agency’s part.
The focus has now shifted to Ripple’s reply, and Alderoty stated, “Stay tuned for Ripple’s Form C to be filed next week.” He recently shared a potential timeline for the legal battle, suggesting it could extend deep into 2025.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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