In the latest twist of the ongoing drama between Ripple and the SEC, the regulator has thrown down the gauntlet by appealing certain aspects of a pivotal ruling. The SEC is laser-focused on Ripple's bigwigs, Brad Garlinghouse and Chris Larsen, and their personal sales of XRP, claiming they danced a little too close to the securities law flame.
The legal saga seemed to be winding down after Judge Analisa Torres’ 2023 judgment, which cleared Ripple of wrongdoing concerning its sales of XRP to retail investors via crypto exchanges. But just when you thought the dust had settled, the SEC decided to shake things up again. Instead of challenging the part of the ruling that let Ripple off the hook for programmatic sales of XRP as non-securities, the SEC zeroed in on other juicy bits of the verdict.
One hot topic in this appeal is the court's stance that Ripple's XRP antics on crypto platforms, and the personal trades by the company's top dogs, didn’t cross the legal line. Plus, the SEC has a bone to pick with the ruling that Ripple's non-cash exchanges of XRP weren't violating any securities laws.
Interestingly, Ripple's institutional sales weren’t so lucky and were found to be in violation, leading to a hefty $125 million fine. Ouch.
Things got even more interesting when the SEC seemed to go radio silent after filing a notice of appeal on October 2. With a 14-day deadline to file additional forms, the crypto community was buzzing with speculation. Was the SEC playing it cool, or did they drop the ball?
As the deadline loomed, whispers swirled that a missed filing could mean game over for the SEC's appeal, leaving Judge Torres’ decision standing. The plot thickened when the SEC's Form C finally surfaced, sporting a date discrepancy that only fueled more speculation about a missed deadline. Was it a clerical hiccup, or did the SEC have a trick up its sleeve?
Now, the ball is in the 2nd Circuit Court of Appeal's court to decide if the SEC's timing was spot-on or fashionably late. Meanwhile, Ripple's legal team, led by the ever-ready Stuart Alderoty, is gearing up to fire back within the week.
Stay tuned for more on this high-stakes crypto courtroom showdown!
