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Stuart Alderoty, Chief Legal Officer of Ripple 
$2 Labs, shared the next steps regarding the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). This legal battle addresses the classification of XRP as a security and whether Ripple sold this token without registering it under U.S. laws.
Steps in the Appeals Process
The case, which began in 2020, is entering the appeals phase, with expectations that the process could extend until 2026. As legal preparations continue, both parties are bracing for what lies ahead in the lengthy litigation journey.
Alderoty elaborated on the SEC’s reasons for its appeal and Ripple’s cross-appeal during the company’s Swell conference. He pointed out that the SEC needs to submit Form C by October 16, 2024, detailing the topics it intends to pursue in the lawsuit.
Ripple’s Cross-Appeal Points
In the following two weeks, Ripple will initiate its cross-appeal by submitting its Form C. The company plans to contest the ruling that designated certain institutional XRP sales as unregistered securities transactions.
Alderoty expressed confidence that the appeal will result in a favorable outcome for Ripple, emphasizing that most appeals in the Second Circuit Court of Appeals uphold district court decisions.
Ripple’s focus in its cross-appeal will be on specific provisions of Judge Analisa Torres’ ruling, which concluded that institutional XRP sales violated securities laws. The company argues that these sales did not involve “investment contracts” and therefore should not be deemed securities.
Alongside its legal battles, Ripple continues to expand its global operations and has introduced a new stablecoin, RLUSD. Designed to facilitate faster and cheaper cross-border payments, RLUSD will be issued under New York’s stringent regulatory framework.
The lawsuit between Ripple and the SEC holds significant implications for the cryptocurrency market, potentially setting legal precedents. The outcome of the appeals process could provide guidance for other cryptocurrency companies facing similar challenges.
