- The SEC has advanced its appeal in the Ripple lawsuit, potentially reshaping U.S. crypto regulation.
- XRP posted weekly gains despite a short-term decline amid ongoing legal uncertainties with the SEC.
Amid the ongoing legal dispute between Ripple (XRP) Labs and the United States Securities and Exchange Commission (SEC), the SEC has continued its appeal efforts.
On October 17, the agency filed a “Pre-Argument Statement on Civil Appeal” (Form C), signaling its intent to challenge a prior court decision in this case.
This marks a significant development in the high-profile legal battle as tThe outcome of this appeal could reshape the limits of the SEC’s authority over the crypto industry.
The story so far?
For those unaware, on October 2, the SEC took an important step by filing a notice of appeal in the ongoing lawsuit against Ripple, seeking to overturn a decision by Judge Analisa Torres.
However, on October 16, it was revealed that the SEC had missed the deadline to submit its Form C, sparking widespread speculation.
As expected, many in the crypto community are wondering if this delay signals a possible private settlement with Ripple or if it is the result of an error by Gary Gensler’s team.
When the SEC filed a lawsuit against Ripple and two of its executives in 2020, Ripple made it clear that this legal battle was not just about their company. Instead, they positioned it as a defense for the entire cryptocurrency industry.
According to Ripple, this case speaks to the SEC’s broader intent to target more entities in the space.
Now, nearly four years later, as the case moves through the Second Circuit Court of Appeals, its relevance only grows.
Therefore, the outcome could set a crucial precedent, influencing how security laws are applied to token issuers, particularly within the key financial jurisdiction of the Southern District of New York.
Ripple CLO steps in
Commenting on the SEC’s action, Ripple Labs Chief Legal Officer Stuart Alderoty spoke to X (formerly Twitter) and noted:
“No surprises here – once again, that much is clear. The Court’s ruling that “XRP is not a security” is NOT appealed. This decision constitutes the law of the land. Stay tuned for Ripple’s Form C to be filed next week.
In fact, following the SEC’s previous appeal, Alderoty also expressed his disappointment earlier when he said:
“The SEC lost on all key points, which is why they appealed. Today, Ripple filed a cross-appeal to ensure nothing is left on the table, including the argument that there cannot be an “investment contract” without essential rights and obligations are found in a contract.
Impact on the price of XRP
Amid these legal developments, XRP appears to face near-term challenges. The coin was trading at $0.5499 at press time, reflecting a 0.99% decline over the past 24 hours according to CoinMarketCap.
However, despite this slight decline, the overall outlook for the token remains positive, with XRP showing an increase of 2.56% over the past week.
This upward trend in weekly performance suggests that despite continued regulatory hurdles, investor confidence in XRP’s long-term potential may remain strong.
