New York, Saturday, October 19, 2024- The US Securities and Exchange Commission (SEC) filed an appeal on Thursday, seeking a review of a previous ruling favoring Ripple Labs.
The agency submitted a “Civil Appeal Pre-Argument Statement,” requesting the US District Court for the Southern District of New York to revisit its judgment, particularly concerning Ripple’s sales of XRP and the involvement of its executives.
The SEC claims the district court erroneously granted partial summary judgment for Ripple and its CEO Brad Garlinghouse and co-founder Chris Larsen.
The agency is pushing for the court to reassess the legal aspects of the case, requesting a “de novo” review, meaning a fresh evaluation of the law’s application.
This comes after Ripple’s earlier win, where the court ruled that some of Ripple’s XRP sales didn’t breach securities laws due to the nature of those transactions. Ripple’s Chief Legal Officer, Stuart Alderoty, responded on social media, confirming that the SEC’s appeal does not dispute the earlier decision that XRP is not a security.
He stated that Ripple would file its own appeal-related document next week.
The SEC initially sued Ripple in 2020, alleging it raised $1.3 billion through unregistered XRP sales. Though Ripple was ordered to pay a $125 million fine for institutional sales of XRP, programmatic sales to the public were deemed lawful.
