KEY POINTS
- Crypto lawyers argued that the filing was submitted a day late, and may be dismissed
- Ripple's Alderoty said the company isn't surprised and will file its cross-appeal Form C next week
- The SEC isn't appealing the ruling over $XRP's status as a non-security
- The regulator is instead appealing the ruling on Ripple executives' $XRP sales on exchanges
Topics on the XRP token are trending on X after the U.S. Securities and Exchange Commission (SEC) filed Form C, which is a pre-argument statement for a civil appeal, after it filed a notice of appeal earlier this month to overturn a 2023 ruling that basically cemented the XRP's status as a non-security.
The XRP army and the XRP community were trending in the business and finance topics on X Thursday night through early Friday as users of the cryptocurrency token discussed the asset's future now that the SEC has formally appealed.
Did SEC File Too Late?
Among the main topics of discussion in the crypto community was whether the SEC filed its Form C on time, which prominent crypto lawyer James "MetaLawMan" Murphy believes was done too late.
Murphy explained that the Form C document was dated Oct. 16, but the court's file stamp on the document was dated Oct. 17. "We should find out soon whether the 2nd Circuit concludes that the SEC has missed the deadline," he wrote.
This is weird.
— MetaLawMan (@MetaLawMan) October 17, 2024
The SEC's Form C is dated October 16.
The court's file stamp on the document is October 17.
We should find out soon whether the 2nd Circuit concludes that the SEC has missed the deadline. pic.twitter.com/YEkpEOZea5
One user agreed that the filing was submitted "a day late and a dollar short." The said user went on to challenge the court to throw out the appeal "per the law."
Another user pointed out how Form C documents state that "if you do not comply with these requirements within 14 days, your appeal will be dismissed."
What the SEC is Appealing
Prominent attorney Jeremy Hogan noted that the SEC is not appealing the XRP token's status as a non-security. Instead, the Wall Street regulator wants to appeal the ruling on Ripple's sales of the crypto asset on exchanges and "the use of XRP as a kind of payment."
I've never been so excited to get a "C" since I was in high school math.
— Jeremy Hogan (@attorneyjeremy1) October 17, 2024
What is NOT being appealed: That XRP is not a Security.
What is being appealed: Ripple's sales of XRP on exchanges and the use of XRP as a kind of payment.
What does "De Novo" mean? It means the appellate… https://t.co/DBsQpi8kVi pic.twitter.com/ssSlxblSfy
Notably, the SEC's filing states that it is appealing the ruling on whether Ripple CEO Brad Garlinghouse and co-founder Chris Larsen's "personal offers and sales of XRP" were "erroneously granted partial summary judgment in favor of defendants."
Hogan described the SEC's decision of bringing back concerns over Garlinghouse and Larsen's personal XRP sales as a "chicken move."
Ripple Isn't Backing Down
Ripple's Chief Legal Officer Stuart Alderoty said the company isn't even surprised that the SEC filed its Form C. He also reiterated that the SEC isn't appealing the court's ruling that XRP is not a security.
As Alderoty previously said when the SEC filed its appeal notice earlier this month, Ripple will fight back. He said Ripple will file its cross-appeal Form C next week.
SEC vs Ripple Could Have Ended In August
Many crypto experts and lawyers have pointed out that the SEC is making a "big mistake" in its move of appealing the ruling, especially since Ripple was fined $125 million anyway in August to end the squabble.
The SEC initially wanted a staggering $2 billion fine on the world's largest XRP holder, but Judge Analisa Torres believed $125 million in civil penalties was enough.
Backed by strong support from the XRP and broader crypto community, Ripple has been fighting the legal battle well for some four years. Alderoty and Garlinghouse have vowed to not give up the fight.
Instead of getting bogged down by the SEC's continuing crusade, XRP is getting much attention in recent weeks, but for all the good reasons. Two companies have filed for an XRP exchange-traded fund (ETF), and the token is doing relatively well in recent days, increasing by 2.5% in the last seven days.
