SEC Appeals in XRP’s Case, Ripple Considering Counterclaim

The US Securities and Exchange Commission has finally appealed in Ripple’s case against earlier judgment from the United States Court of Appeals for the Second Circuit, a Wednesday filing revealed. Ripple, on the hand, is considering to file a counterclaim.

After the appeal, Ripple CEO Brad Garlinghouse posted on X saying that somehow, SEC still hasn’t gotten the message: “they lost on everything that matters” even after Ripple, the crypto industry, and the rule of law have already prevailed. Garlinghouse added, “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.” 

Ripple CTO, Stuart Alderoty, said that instead of faithfully applying the law, SEC continues to engage in litigation warfare against the industry.  He added, “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)”

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… https://t.co/1hW7xVSL9b

— Brad Garlinghouse (@bgarlinghouse) October 2, 2024

Meanwhile, an SEC spokesperson shared that the district court decision in the Ripple’s case is against decades of Supreme Court precedent and securities laws and the SEC looks forward to making its case to the Second Circuit.

After the filing, XRP is currently trading at $0.5401 after it tanked 10.43% in the past day. The dip crept in after XRP saw a surge in its price,  when speculations around SEC considering a appeal started doing rounds.

On August 7, a ruling from a judge ordered Ripple to pay a civil penalty of $125 million, an amount far below the SEC’s initial request of a $2 billion penalty. Moreover, the decision was not completely in SEC’s favor as it partially granted and also denied its initial motion for remedies in XRP’s sale. 

The SEC first sued Ripple in 2020 and accused Ripple of violating securities laws with XRP sales as an unregistered security which brought in over $1.3 billion for the company.

Also Read: Bitwise Files for XRP ETF with New Trust Formation