Ripple Appeals Court Ruling on XRP’s Institutional Sales

Ripple Labs has initiated an appeal against a 2023 court decision stating that institutional sales of the XRP token are unregistered securities.

The company submitted a Form C on October 25 in the Court of Appeals for the Second Circuit, as stated by Ripple’s chief legal officer, Stuart Alderoty, in a post on X. This form details the legal justification for Ripple’s challenge.

Challenging the Court’s Use of the Howey Test

Ripple is specifically contesting the court’s interpretation of the Howey test, which determines whether a transaction is classified as an investment contract.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has submitted the Civil Appeal Pre-Argument Statement (Form C). The relevant sections are below. pic.twitter.com/usm3fCjG20

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 25, 2024

Ripple Labs is also advocating for a reevaluation of the “essential ingredients” required for a transaction to be deemed an investment contract.

The “Challenging Phase” of the SEC Lawsuit Is Over for Ripple

Alderoty remarked that the most difficult aspect of Ripple’s legal confrontation with the Securities and Exchange Commission (SEC) is now behind them.

He indicated that the regulator’s broader strategy aims to create “distraction and confusion for Ripple and the industry,” referring to it as mere background noise.

The SEC is precluded from introducing new evidence or requiring Ripple Labs to produce additional documentation, Alderoty noted. He also mentioned that “all the drama” surrounding the exchange of documents in this litigation is now concluded.

According to Ripple’s legal chief, XRP is “uniquely positioned” as it has been clearly identified as not being classified as a security. This ruling, which remains “the law of the land,” has not been contested by the SEC, he stated.

After Ripple Labs filed Form C, the company’s remittance token, XRP, experienced a slight decline of 24 hours and was trading at $0.5266 as of 8:10 a.m. EST.

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