Ripple Execs Strikes SEC With Cross-Appeal, Pledge to ‘Leave Nothing on the Table’

Ripple Contests SEC’s Appeal

Ripple has taken a major step in its ongoing fight with the SEC by filing a cross-appeal in response to the agency’s recent appeal. The filing allows Ripple to contest specific parts of the Aug. 7 judgment.

While Ripple was ordered to pay $125 million in penalties over institutional XRP sales, the court’s ruling was a partial win for the company, as it determined that XRP sold on secondary markets weren’t considered securities. The SEC, however, wants to overturn the decision that programmatic sales of XRP to retail investors didn’t break securities laws.

 

“Leaving Nothing On The Table”

Stuart Alderoty, Ripple’s Chief Legal Officer, emphasized that the SEC’s decision to appeal stems from losing on all critical points.

Explaining Ripple’s decision to counter with a cross-appeal, Alderoty stated,

“Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an “investment contract” without there being essential rights and obligations found in a contract.”

Alderoty clarified that Ripple is out to close the chapter on the SEC’s “regulation-by-enforcement” strategy. “We’re looking forward to sealing the SEC’s fate,” he stated, noting that Ripple, already a key player in the court’s initial ruling, intends to lead the charge again.

Ripple CEO Brad Garlinghouse echoed Alderoty’s stance , taking a swipe at SEC Chair Gary Gensler . “If Gensler and the SEC cared about the rule of law, they would accept their loss and move on,” he remarked. Instead, Garlinghouse argued, the agency is more focused on disruption than on fostering innovation in the U.S.

Legal experts like crypto attorney Fred Rispoli saw Ripple’s move as inevitable. “Stakes are super high now,” Rispoli tweeted , predicting that a reversal on the SEC’s win regarding institutional sales would deal a devastating blow to the regulator.

Bitnomial Joins Legal War Against SEC

Adding to the war against the SEC, cryptocurrency derivatives exchange Bitnomial launched a lawsuit against the SEC in Illinois federal court, challenging the agency’s jurisdiction over its planned XRP futures contract.

The exchange, regulated by the Commodity Futures Trading Commission (CFTC) , filed for the XRP/USD futures in August, just after Ripple secured a key legal win in its battle with the SEC. A federal judge had rejected the SEC’s argument that XRP is a security.