SEC Files 1-Page Notice to Appeal XRP Victory, Ripple CEO Reacts

The event that the XRP community never wished has played out. The United States Securities and Exchange Commission (SEC) has officially filed a notice to appeal the July 13, 2023, Judge Torres’s ruling that partially favored Ripple and the embattled digital token XRP.

The new development implies that the legal battle that began in December 2020 has entered another phase spanning another year or two. It took the court about 4 years before concluding recently.

James K. Filan, a defense lawyer and former federal prosecutor, recently broke this bad news in a tweet, captioning a court document.

As expected, the news received many responses from the crypto community. Many big guns within the XRP community, including Ripple CEO Brad Garlinghouse, CLO Stuart Alderoty, and many others divulged their discontentment.

According to Garlinghouse, the action shows that the SEC and its Chair Gary Gensler are irrational. He said this action will only hurt the investors the regulator is meant to protect.

Despite the filing, Garlinghouse believes that the SEC lost every important aspect of the case, vowing that the blockchain payment firm will continue fighting as long as it takes.

Brad Garlinghouse noted

“If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.

“Somehow, they still haven’t gotten the message: they lost on everything that matters. Ripple, the crypto industry, and the rule of law have already prevailed.

“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal.

“(Remember, when the SEC tried unsuccessfully to file an “interlocutory appeal” they made clear they had no intention of challenging XRP’s status as a non-security.)”

In a 3-point tweet, Ripple CLO, Stuart Alderoty termed the action disappointing. He said the SEC has already embarrassed itself, but buying time with the appeal to save its face:

“(1) The SEC’s decision to appeal is disappointing, but not surprising. This just prolongs what’s already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.

“(2) Instead of faithfully applying the law, this agency, under this Chair, continues to engage in litigation warfare against the industry. We are evaluating whether to file a cross appeal. Either way, the SEC’s “lawsuit has been irrational and misguided from the start, and we’re ready to prove that yet again in the appellate court (once again taking the lead for the industry).

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