Ripple escalates legal battle with SEC, filing new appeal in XRP lawsuit

Ripple intends to counter the SEC, submitting its Form C civil appeal today. The blockchain-based digital payment network will particularly challenge the court’s previous ruling on its XRP institutional sales, wanting clarity over the token’s classification.

Ripple’s executives anticipate positive results from the Second Circuit’s ruling

On August 7, District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP to retail customers did not breach federal securities laws, concluding that XRP is not a security. The Security and Exchanges Commission dissatisfied with the court’s ruling, filed an appeal to have XRP treated as a security.

Today, Ripple is also expected to submit its Form C appeal to the US Court of Appeals for the Second Circuit. The appeal will focus on the District Court’s ruling on its institutional sales, which were considered unregistered securities transactions. 

The Form C filing, however, has Ripple’s executives Brad Garlinghouse and Stuart Alderoty optimistic, eyeing a win over the US commission. 

Brad Garlinghouse told Journalist Eleanor Terrett:

I am so confident that we’re going to win the appeal, and that would really put a dagger in Gary Gensler’s whole agenda around crypto regulation. Honestly, Ellie, I’m not losing any sleep over it at all. I’m so confident about it because I believe we’re on the right side of the law. I think we’re on the right side of history.

~ Brad Garlinghouse

Stuart Alderoty also shared the same convictions with Garlinghouse, believing they would add another win over the regulator. Alderoty argued that the Second Circuit has a track record of being critical of regulators and regulatory overreach raising their winning chances. 

Ripple Labs feels it should have spoken to US regulators much earlier

At the DC Fintech Week conference, Ripple’s CEO Brad Garlinghouse told CNBC’s Tanaya Macheel that he feels his network should have reached out to regulators sooner. He claimed his network made a mistake by delaying discussions with the US commission and is only now trying to recover from its losses and legal challenges.

However, Garlinghouse did blame SEC chair Gary Gensler for the late introduction of crypto regulations in the United States, arguing that he brought up hurdles for digital assets. He even called out Senator Elizabeth Warren for misrepresenting facts on cryptocurrencies and, in one of his posts, shared his support for Republican candidate John Deaton instead.