In a move to bolster its legal defenses, Ripple Labs has announced that it will be filing a cross-appeal in its long-standing case against the U.S. Securities and Exchange Commission. The decision comes after the SEC filed a notice of appeal earlier this month, marking the latest development in the regulator's case against Ripple, which was first initiated in December 2020. According to Chief Legal Officer Stuart Alderoty, the cross-appeal aims to preserve the company's arguments and points, ensuring that all possible avenues are explored.
Alderoty emphasized that this move is essential to maintaining a robust defense, including the argument that an investment contract cannot exist without the fundamental rights and obligations typically found in a contract. This development follows District Judge Analisa Torres' ruling in July 2023, which determined that Ripple's sales of XRP to exchanges did not constitute a violation of federal securities laws, thereby establishing that XRP is not considered a security. Similar to the SEC's recent filing, Ripple's initial submission is a notice of intent to provide a more detailed argument at a later stage.
Both parties are expected to submit a form outlining their arguments in the coming weeks, although the specifics will be reserved for their opening briefs. The SEC's brief is anticipated towards the end of January, with Ripple's opening brief, which will also serve as its opposition to the SEC's brief, to follow thereafter. Alderoty expressed confidence in the judicial process, stating that the appeals court's involvement will ultimately bring the clarity needed, while also highlighting the need for a policy solution from legislators.
In the absence of such a solution, Ripple remains committed to pursuing its case through the courts, with the aim of achieving victories and promoting industry clarity through litigation.