SEC Challenges Ripple Court Decision in Opening Brief
The United States Securities and Exchange Commission (SEC) has submitted its opening brief to challenge a court decision favoring Ripple.
SEC Claims XRP Sales as Unregistered Securities Transactions
In its Jan. 15 filing, the SEC claims that Ripple’s XRP sales to retail buyers should be classified as unregistered securities transactions.
- SEC argues that XRP sales fostered profit expectations among buyers
- Requests Appeals Court to vacate lower court ruling
Appeal Follows Partial Defeat in Previous Ruling
In July 2023, Judge Analisa Torres ruled that only XRP sales to institutional investors qualified as securities.
- Court concluded sales to retail investors did not violate federal securities laws
- SEC seeks reversal of this outcome
Ripple Fined $125 Million in Previous Lawsuit
The case began in December 2020 and ended with Ripple fined $125 million in August 2024.
Ripple’s Response to SEC’s Appeal
Ripple’s Chief Legal Officer, Stuart Alderoty, dismissed the SEC’s appeal as a repetition of failed arguments in court.
- Ripple remains resilient amidst regulatory challenges
- Company focuses on growth in changing regulatory environment
“The SEC’s lawsuit is just noise. A new era of pro-innovation regulation is coming, and Ripple is thriving.”
Ripple CEO Brad Garlinghouse also expressed similar sentiments, criticizing the SEC’s actions.
“[The SEC’s brief is] one definition of insanity…. Doing the same thing over and over and expecting different results. Gensler’s SEC really took this to heart.”