Ripple Labs has moved to challenge the SEC in the US Court of Appeals for the Second Circuit, filing a Form C cross-appeal to contest key aspects of the SEC lawsuit. This filing not only contests a previous ruling that classified certain XRP transactions to institutional investors as securities but also responds directly to the SEC’s October 16 appeal that questioned a favorable district court ruling for Ripple earlier this year.
Ripple’s Legal Rebuttal Through Form C Filing
Ripple’s filing of a Form C cross-appeal has sparked interest within both the legal and cryptocurrency communities, with Ripple Chief Legal Officer Stuart Alderoty confirming the move in a post on X. According to him, the lawsuit will not come with as much drama as the earlier parts of the case. The Appeals Court will only review the record that has already been set, and the SEC can’t submit new evidence or ask Ripple to produce more.
Today, Ripple filed a Form C – listing the issues we plan to raise on our cross appeal. A few things to keep in mind as we move forward:
The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being… https://t.co/AmFocAnbPx
— Stuart Alderoty (@s_alderoty) October 25, 2024
The appeal calls for a de novo review of all issues involved in the case, including whether Ripple’s transfers of XRP qualify as securities under the Howey test. The Howey test, which was established in a 1946 Supreme Court case, determines whether a transaction constitutes an investment contract by assessing factors like the investment of money and expectations of profits from the seller’s activities.
The request for a de novo review could have significant implications, as it essentially seeks a fresh look at these complex issues and how they
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Author: Scott Matherson
