According to breaking news, Ripple Labs has filed a cross-appeal with the US Court of Appeals for the Second Circuit.
A cross-appeal occurs when both parties in a case appeal a lower court’s decision. In this context, Ripple is not only defending itself against the SEC’s appeal, but also appealing aspects of the decision that it disagrees with. This usually happens when one party believes that the court’s decision is partially negative or could be improved in its favor.
The SEC filed the appeal earlier this month based on a lawsuit it filed against Ripple in December 2020. Ripple Chief Legal Officer Stuart Alderoty said in a statement that the cross-appeal was designed to ensure the company had covered every aspect of the case. However, he did not elaborate on what arguments Ripple planned to make.
“We are doing this to make sure we are not leaving anything on the table, including the argument that there can be no investment treaty without the fundamental rights and obligations contained in a contract,” Alderoty said.
In July 2023, District Judge Analisa Torres ruled that Ripple’s programmatic sale of XRP to exchanges and subsequent resale of the token to retail customers did not violate federal securities laws. Her decision clarified that XRP is not classified as a security.
Alderoty noted that both sides will soon submit a form outlining a “fairly high-level description” of their arguments. Detailed arguments will be presented in opening briefs, with the SEC’s brief expected to be filed toward the end of January 2024. Ripple’s brief, which also includes its opposition to the SEC’s brief, will be filed later.
*This is not investment advice.
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About time!