• Crypto & Funx
• 18 Jan, 2025

Ripple has filed Form C for cross appeal in the ongoing XRP lawsuit with the SEC.

Stuart Alderoty stated that the case has broader implications than XRP’s classification as a security.

XRP is trading at $0.52, a 2% decline in the past 24 hours.

As the US Securities and Exchange Commission () intensifies its case against , the blockchain company has stepped up its defense by submitting Form C, essential for its cross-appeal in the legal battle over XRP. This document, known as the Civil Appeal Pre-Argument Statement, lists the critical issues Ripple intends to address.

Ripple’s Chief Legal Officer, Stuart Alderoty, that the case extends beyond just XRP’s classification as a security. He clarified that the court has already recognized XRP, alongside Bitcoin, as a non-security, and importantly, the SEC isn’t challenging this fundamental ruling. Alderoty explained:

“The Appeals Court reviews the record that has already been set…and we have a great record. The SEC can’t submit new evidence or ask us to produce more.”

“The Appeals Court reviews the record that has already been set…and we have a great record. The SEC can’t submit new evidence or ask us to produce more.”

Notably, Ripple’s cross-appeal on four main legal issues: the ingredients of the alleged securities transactions, the treatment of institutional sales, the clarity of the injunction, and the fair notice defense.

Focus on Core Legal Issues

The timing of Ripple’s cross-appeal aligns with the SEC’s request to extend its briefing deadline to January 2025. Now in the appeal stage, the court will review existing records rather than rehashing old evidence or introducing new material, Alderoty explained. This streamlining could reduce the drawn-out litigation drama of previous proceedings. The chief legal executive urged the community to stay vigilant, as he believes the SEC’s broader tactic is to create distractions.

Ripple’s cross-appeal will now merge with filings under case 24-2648 as the lead case as the court proceeds with scheduling orders for briefings. This consolidated approach aims to address Ripple’s primary concerns, particularly around institutional sales and the SEC’s lack of a clear and specific injunction, as noted in the appeal.

The high-profile Ripple vs. SEC case, which started in 2020, alleged Ripple’s sale of XRP constituted an unregistered securities offering. However, earlier this year, Judge Analisa Torres ruled that while institutional sales did breach securities laws, Ripple’s programmatic sales to the broader public did not.

Meanwhile, Ripple CEO recently that his company should have engaged more proactively with U.S. regulators, a lesson that he’s committed to addressing as the company expands.

XRP’s Future Amid Uncertainty

Ripple’s XRP has had its fair share of price fluctuations amid these ongoing legal challenges. Currently trading around $0.52, the token is down 11% over the past month. Interestingly, XRP achieved a local high of $0.66 on September 29.

Despite this turbulent climate, institutional interest in XRP appears strong. Recently, two asset management giants, Bitwise and Canary Capital, for spot XRP ETFs with the SEC, even as uncertainties swirl around the token.