After his last appeal in the case against Ripple Labs, the U.S. Securities and Exchange Commission (SEC) has also revealed the reasoning behind its appeal. In the process, the regulator has not yet filed Form C with the Second Circuit.
In the form, the SEC will need to provide details on the issue it wants to appeal. In this regard, the agency has not yet made it clear whether it will be targeting the July 2023 summary judgment, when the judge in charge of the case recognized Ripple's native token, XRP, as a non-security related to its secondary sales.
Em document filed on October 2, the SEC filed its Notice of Appeal with the United States Court of Appeals for the Second Circuit. “We respectfully appeal to the United States Court of Appeals for the Second Circuit from the final judgment rendered by this Court on August 7, 2024,” the agency said.
Ripple’s Chief Legal Officer Stuart Alderoty voiced criticism of the SEC’s appeal, calling it a surprising turn of events in the case. Similarly, Ripple CEO Brad Garlinghouse described the recent appeal as “infuriating.”
The appeal comes two months after the SEC fined Ripple $125 million instead of the $2 billion it had demanded. The appeal is seen as an attempt by the regulator to reverse its loss. Alderoty said the SEC’s action was “disappointing” but not unexpected.
Ripple Considers Cross-Claim Action Against SEC After $125 Million Fine
Ripple Labs is considering Ripple Inc. has made a new legal move in its ongoing legal battle with the SEC, following a recent ruling that resulted in a $125 million fine for the financial technology company. The decision came as a compromise between the $10 million initially proposed by Ripple and the nearly $2 billion demanded by the SEC, which also included ample disgorgement and accrued interest from before the judgment.
Stuart Alderoty, Ripple’s chief legal officer, expressed disappointment but not surprise at the verdict. He was openly critical of the SEC’s approach to the litigation: “The Court has already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, no casualties or losses,” he noted.