Ripple files Form C to clarify its argument against the US SEC

Ripple has filed a civil appeal pre-argument statement Form C. The company is appealing part of the 2023 ruling summary, which termed institutional sales of XRP as unregistered security offerings. The US regulator has also filed Form C, appealing against the ruling that retail XRP sales did not violate US federal laws on security issuance.

The US Securities and Exchange Commission (SEC) and Ripple are back in court with Form C filings over XRP sales. The company filed its civil appeal pre-argument statement challenging part of the court’s ruling summary in 2023. 

Ripple appeals XRP institutional sales as unregistered securities

US District Judge Analisa Torres’ ruling was a partial victory for both Ripple and the SEC. The judge stated that XRP in itself was not a security when issued to retail investors. However, the court concluded that Ripple’s institutional sales of XRP constituted unregistered securities offerings. Ripple is appealing the partial loss of the ruling.

Stuart Alderoty, Ripple’s chief legal officer, expressed confidence that the they would win the case. The legal expert told Fox Business that he felt good about the result of the second circus. 

Ripple’s filing comes after the US SEC filed a civil appeal pre-argument statement (Form C) against the company. The commission filed the civil appeal with US courts in a bid to reverse Judge Analisa Torres’ summary judgment.

Today, Ripple filed a Form C – listing the issues we plan to raise on our cross appeal. A few things to keep in mind as we move forward:

The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being… https://t.co/AmFocAnbPx

— Stuart Alderoty (@s_alderoty) October 25, 2024

According to Fox Business journalist Eleanor Terrett, the commission is challenging the company’s programmatic sales of XRP on crypto trading platforms and Ripple’s officials’ alleged aiding of the sales. 

The journalist also noted that the commission’s filing seeks to unravel Ripple’s distribution of XRP to retailers. Terrett also emphasized that the US SEC is not appealing the monetary penalty of $125 million or Judge Torres’ decision not to grant disgorgement.

Alderoty and Garlinghouse express confidence in winning the appeal

Alderoty emphasized that the commission is not appealing whether XRP is a security, and the judge’s ruling stands as the law of the land. The lawyer wrote on X that the US SEC’s overall strategy is to distract and confuse the XRP issuer and the entire crypto industry. He explained that Ripple’s business will continue to grow as the legal process unfolds.

In an interview with Eleanor Terrett, Ripple’s CEO Brad Garlinghouse said he was confident the blockchain company was going to win the appeal, and that would cripple SEC chair Garry Gensler’s agenda revolving around crypto regulations. The CEO also mentioned that he believes the company is operating on the right side of the law and is on the right side of history.

The news comes after Garlinghouse said banking institutions were distancing themselves from crypto individuals and entities. While speaking at Finetech Week in Washington, Garlinghouse stated that Citibank had de-banked him for his involvement in the crypto industry, ending a 25-year-old relationship.