The SEC has formally filed an appeal questioning a recent court decision regarding Ripple XRP sales. The filing targets the court’s ruling that Ripple’s sales on platforms do not constitute unregistered securities and contests that Ripple executives’ personal sales of XRP did not violate securities laws.
The SEC has argued that Ripple, together with its executives Brad Garlinghouse and Chris Larsen, flouted the main provisions of the Securities Act of 1933. Thus, the court’s earlier decision on 13 July 2023 ruled partially in favor of the SEC, stating that, indeed, Ripple’s XRP sales to institutional investors did violate the law.
However, it also ruled in favor of Ripple, stating that sales on digital platforms and personal transactions by Garlinghouse and Larsen did not constitute violations. On Aug. 7, 2024, the court issued a final judgment imposing a $125 million civil penalty against Ripple while thereby enjoining the latter from further violations.
Response from Ripple Chief Legal Officer
The SEC’s appeal seeks a review of whether the court erred in granting summary judgment in favor of Ripple’s digital asset platform sales and personal sales by its executives. The case now awaits a fresh review of the issues at hand. Stuart Alderoty, Ripple’s Chief Legal Officer, responded on X, clarifying that the ruling that XRP is not a security still stands and is not part of the appeal.
Another factor here is the procedural discrepancy. Analyst MetaLawMan pointed out the discrepancy between the SEC’s Form C filing dates and the form data added by court staff, making the question of the SEC’s late filing a topic of discussion.
Journalist Eleanor Terrett, in the meantime, having reached out to the SEC, further obscured the situation. What the public can only do now is sit back and wait to see what happens.
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