Ripple Labs is not backing down from its legal clash with the U.S. Securities and Exchange Commission (SEC). This follows after it just filed a formal notice of cross-appeal with the US Court of Appeals for the Second Circuit.
Court’s Ruling Sparks Dual Appeals
Ripple has been at loggerheads with the SEC for over a year. However, on August 7, Ripple scored a major win. That was when the court determined that XRP tokens sold on secondary markets did not qualify as securities. Although Ripple was ordered to pay a $125 million fine, the regulator had reasons to be unimpressed with the outcome.
If not for anything else, the settlement was very far off from the initial demand, of nearly $2 billion, that the SEC requested. So, filing for an appeal on the part of the SEC does not necessarily come as a surprise. Rather it has been an expectation, not only for Ripple, but for the industry at large.
Ripple Stands Firm Against SEC
Ripple’s Chief Legal Officer, Stuart Alderoty, has confirmed that the company did anticipate SEC’s decision to pursue an appeal. This explains why Ripple has now come out with its cross-appeal.
Alderoty explained that Ripple does not only see it as a defence mechanism. The counter-appeal is also a strategy that Ripple will hope can protect its interests and further clarify the legal standing of XRP tokens.
Essentially, the two appeals are going to be merged into a single case before the Court of Appeals. That is, with its outcome very likely to set the tone for crypto regulation in the U.S.
