SEC Files Notice of Appeal in Ripple XRP Case

The U.S. Securities and Exchange Commission (SEC) has officially filed its notice of appeal in the Ripple XRP lawsuit, according to a recent filing submitted to a New York court on Wednesday. In August, a judge ordered Ripple to pay over $125 million in civil penalties, marking the conclusion of the SEC’s lawsuit and determining that XRP is not a security. The ruling was a significant victory for Ripple and the broader cryptocurrency industry. However, after weeks of speculation, the SEC has now decided to appeal the decision, filing just days before the deadline.

The SEC is seeking to overturn the ruling made by Judge Analisa Torres, who determined that Ripple’s programmatic sales of XRP and its distribution of XRP tokens in exchange for labor and services did not qualify as securities offerings. The regulatory body also aims to delay pretrial proceedings and the trial itself while awaiting the outcome of the appeal.

SEC Pursues Appeal in Ripple XRP Security Case

Ripple has publicly stated that it does not intend to appeal the fine it was ordered to pay. While the SEC has filed its notice of appeal, it has yet to submit the full details of the appeal at the time of writing. In a statement, an SEC spokesperson expressed their stance: “We believe the district court’s decision in the Ripple case conflicts with decades of Supreme Court precedent and securities laws. We are eager to present our case to the Second Circuit.”

This development comes just a day after Bitwise became one of the first asset managers to file for a Spot XRP Exchange-Traded Fund (ETF). The SEC’s appeal could potentially hinder hopes for the approval of an XRP ETF and has raised concerns among investors. The uncertainty surrounding the appeal may slow Ripple's growth, as the company would need to devote resources to defending its position if the appeal is granted.

Ripple Labs has yet to issue a formal response to the SEC’s appeal. However, officials from the company have expressed confidence that the appeal lacks a strong foundation, suggesting that Ripple's previous victory in the case should stand firm