Ripple’s top legal representative, Stuart Alderoty, has highlighted that the recent SEC appeal does not contest the judgement declaring cryptocurrency XRP as a non-security. The SEC’s latest case action against Ripple concentrates on the court’s favourable summary judgement towards the defendant’s XRP rulings, rather than challenging XRP’s classification. It primarily asks the court to revaluate its decisions concerning Ripple’s XRP sales on exchanges, as well as personal XRP sales by the company’s CEO, Brad Garlinghouse, and co-founder, Chris Larsen.
Reacting to the SEC’s appeal, Alderoty emphasizes that the SEC’s Form C does not challenge the court’s ruling that XRP is not a security. According to this top-tier legal figure, the ruling is still under enforcement. He revealed that Ripple plans to file its Form C in the coming days.
The SEC has voiced accusations against Garlinghouse and Larsen, alleging that these executives violated laws related to securities by offering and selling XRP. The SEC also claims these executives facilitated Ripple’s infringements of these laws. Its appeal addresses the court’s decision to grant a partial summary judgement favouring the defendants, scrutinizing XRP sales on exchanges, personal sales by Garlinghouse and Larsen, and Ripple’s XRP distributions in exchange for non-cash considerations.
Ripple is expected to file its Form C in response to the SEC’s accusations within a week. The process leading to the SEC filing its initial brief is predicted to take up to 90 days, according to Alderoty, and the briefing protocol could extend till July 2025. Furthermore, Ripple was bestowed favourable ruling by Judge Analisa Torres of the US District Court for the Southern District of New York in July 2023. The judgement recognised XRP as a non-security when sold programmatically on digital asset exchanges.