The U.S. Securities and Exchange Commission (SEC) has filed a notice of appeal with the Second Circuit Court of Appeals, confirming its intention to challenge rulings made by Judge Analisa Torres in the Ripple XRP case. The notice, filed just days before the deadline, did not specify which aspects of the ruling the SEC aims to contest, as it only served as a formal declaration of the agency’s intent to appeal.
SEC Seeks to Challenge August Ruling
This move was largely anticipated, as the SEC had previously tried to appeal Judge Torres’ 2023 decision. However, the court dismissed the SEC’s earlier attempt, stating that an appeal could only proceed after a final judgment. Following the filing, an SEC representative noted that the agency intends to challenge Judge Torres’ August 7 ruling.
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According to the SEC, the decision conflicts with a Supreme Court precedent, and the regulator plans to defend long-standing securities laws through the appeal. Ripple’s CEO, Brad Garlinghouse, responded to the news by reaffirming that XRP is not a security.
In a tweet, he emphasized that the SEC does not plan to challenge the ruling that XRP, the native token of the XRP Ledger (XRPL), is not classified as a security. Garlinghouse stated, “XRP’s status as a non-security is the law of the land today,” adding that Ripple will continue to fight in court if necessary.
Ripple’s Legal Team Expresses Frustration
Stuart Alderoty, Ripple’s Chief Legal Officer, expressed frustration over the SEC’s decision to prolong the legal battle, which has already dragged on for four years. He criticized the agency’s actions as an “embarrassment” and suggested that Ripple is weighing its own legal options, including a possible counter-appeal.
Related article: Ripple CLO Calls Out SEC for Lack of Regulatory Clarity
While the court’s ruling represented a partial victory for Ripple, the company is considering appealing the unfavorable aspects of the decision. Shortly after the SEC’s filing, Bitwise submitted a proposal to the SEC for an XRP exchange-traded fund (ETF).
Despite this development, XRP’s price dropped by over 10% in the last 24 hours, trading at 53.5 cents with a market cap still above $30 billion.