Ripple Labs has recently filed an appeal in the case against the United States Securities and Exchange Commission (SEC), known as Form C. The company’s appeal focuses on the district court’s application of the Howey test to transfers of its native token, XRP, and the classification of XRP in institutional sales as securities.
In the appeal, Ripple clarifies that the case is not about whether XRP is a security. Both XRP and BTC have been recognized as not classified as securities. The SEC is not disputing this ruling, which is considered the law of the land.
Another point raised in the appeal is whether the court decision took into account Ripple’s lack of fair notice in its conduct. The SEC’s inconsistent and deliberately vague statements regarding federal industry laws may have resulted in a potential rule violation.
Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that the Court of Appeals will review the established record, and the SEC cannot submit new evidence or request further documentation. He also acknowledged the SEC’s strategy of creating distraction and confusion but stated that it is just background noise. Ripple’s business continues to grow and strengthen despite the ongoing appeals process.
It’s important to note that the SEC filed a “Civil Appeal Pre-Pleading Statement” (Form C) on October 17 in the U.S. District Court for the Southern District of New York. However, the ruling that XRP is not a security remains unchanged. The SEC has recently appealed the federal court’s decision on XRP’s security classification, which favored Ripple.
In a separate development, the SEC has requested an extension to finalize its main claim in the lawsuit against Ripple. This request could potentially extend the litigation timeline, which legal experts had already predicted would continue into 2026. The request coincides with Ripple’s expected submission of Form C, which outlines the points of the court’s decision that the company intends to challenge on appeal.
Please note that the information provided in this article is for informational purposes only and does not constitute financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.