KEY POINTS
- Ripple's CEO said the company won't back down, saying the appeal won't change $XRP's status a non-security
- Jeremy Hogan said the SEC was making a 'big mistake' and if anything, it may only get more money from the appeal
- James Murphy expects an outpouring of amicus briefs backing Ripple in the legal battle
The U.S. Securities and Exchange Commission (SEC) has filed to appeal a court ruling in 2023 that determined crypto token XRP is not a security, and lawyers within the cryptocurrency space have shared their views on how the legal battle will come to play.
XRP's woes started in December 2020, when the SEC filed a lawsuit against Ripple and some of its executives, alleging that XRP is a security and should be regulated. Last year, a New York court ruled that offering or selling XRP on crypto exchanges "did not amount to offers and sales of investment contracts."
The SEC has yet to provide a more detailed explanation to defend its decision to challenge the ruling.
Ripple To File a Cross-Appeal?
Following Wednesday's one-page filing from the SEC regarding an appeal, Ripple's Chief Legal Officer Stuart Alderoty revealed that the fintech firm and payment protocol Ripple is ready to prove "yet again in the appellate court" that the Wall Street regulator's lawsuit against Ripple "has been irrational and misguided from the start."
He went on to question whether it was a "coincidence" that the SEC's enforcement chief, Gurbir Grewal, stepped down "about an hour before" the filing was made.
Ripple has been closely associated with the XRP token for years, and the company is also the largest holder of the crypto asset.
Ripple CEO Brad Garlinghouse also commented on the SEC's appeal, saying the financial regulator should have "moved on from this case long ago" if SEC Chair Gary Gensler had been rational.
If Gensler and the SEC were rational, they would have moved on from this case long ago. It certainly hasn’t protected investors and instead has damaged the credibility and reputation of the SEC.
— Brad Garlinghouse (@bgarlinghouse) October 2, 2024
Somehow, they still haven't gotten the message: they lost on everything that… https://t.co/1hW7xVSL9b
"While we'll fight in court for as long as we need, let's be clear: XRP's status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal," he wrote.
SEC Appeal a 'Big Mistake'
Crypto enthusiast and lawyer Jeremy Hogan, a partner at Hogan & Hogan, said the appeal is a "big mistake by the SEC." He believes the SEC "is very, very likely to lose" this legal fight.
Hogan noted that while the regulatory agency "will get more money" if it wins the appeal, it will "have protected no one," adding that nothing will change regarding XRP's court-ruled status as a non-security and Ripple's use of the crypto token.
Initial thoughts on the SEC Appeal:
— Jeremy Hogan (@attorneyjeremy1) October 3, 2024
1. Big mistake by the SEC. It will appeal the programmatic sales ruling and IF it wins, it will get more money from Ripple and have protected no one. Ripple will raise its "Blue Sky" law issue and, if it wins, the SEC's ability to regulate…
Atty. Fred Rispoli urged the XRP army, the community of XRP holders, to not freak out with the news since Ripple will file a cross appeal.
SEC appeals. Ripple will cross appeal. SEC's company-ending district court cases against Coinbase and Kraken continue. Life continues. Don't freak out.
— Fred Rispoli (@freddyriz) October 2, 2024
But if you are a crypto single issue US voter, you absolutely cannot vote for Harris Walz ticket. There is no reset. https://t.co/YKIg7kTLVy
Financial services lawyer James Murphy, who goes by MetaLawMan on social media, is expecting a wave of amicus briefs in support of Ripple once the legal battle heats up.
More on @Ripple appeal.
— MetaLawMan (@MetaLawMan) October 3, 2024
Which big hitters will step up and file amicus briefs in support of @Ripple ?
Will mainstream associations like the U.S. Chamber of Commerce step up to defend jobs and innovation in the U.S.?
Which members of Congress will step up?
Will @RepRitchie &…
While crypto lawyers are rallying behind Ripple and the XRP army in this development, former SEC official John Reed Stark said he expects the ruling to be overturned, arguing that the ruling was already "solidly rebuked by a slew of other federal judges in subsequent decision, and will rarely, if ever, count as precedent."
Meanwhile, XRP has been up by 0.8% in the last 24 hours amid a show of support toward Ripple from the crypto community.
