Ripple Labs has formally filed a Form C with the U.S. Court of Appeals for the Second Circuit, setting out the issues it plans to raise in its cross-appeal to the Securities and Exchange Commission (SEC). The ongoing controversy revolves around the classification and regulation of XRP.
Today, Ripple filed Form C, listing the issues it plans to raise in its counterclaim. There are a few things to keep in mind as you proceed.
This lawsuit is not about whether XRP itself is a security. XRP is in the unique position of not having clarity (along with BTC)… https://t.co/AmFocAnbPx
— Stuart Alderoty (@s_alderoty) October 25, 2024
According to the appeal filed, XRP’s status remains unchallenged, as courts have made it clear that XRP, like Bitcoin, is not a security. The SEC does not dispute this point, and the filing makes clear that no new evidence will be introduced.
Stuart Alderotti, Ripple’s CLO, posted on X that the court has solid evidence to base its decision on. They don’t want to cause any more drama by introducing a new document.
Ripple’s core legal issues
Ripple’s Form C identifies four key issues to be addressed in the appeal.
Investment Contracts: Ripple questions the application of the SEC’s definition of “investment contract” under the Securities Act of 1993. Howie Test: Ripple Disputes the District Court’s Conclusion that Certain XRP Transfers Met the Howie Test Requirements for Investment Agreements. Fair Notice Defense: Ripple argues that there is widespread uncertainty surrounding federal securities laws applicable to digital assets like XRP. Injunction Clarity: Ripple disputes the lack of specific guidance and vagueness of the issued injunction.
Alderoti also pointed to the SEC’s strategy. The SEC has repeatedly caused “chaos and confusion” around Ripple and the larger crypto industry, but the CLO says the company plans to grow regardless of how the appeals go. He assured me that this was just “background noise.”
XRP price fluctuation
Amid this legal back and forth, the price of XRP has fluctuated. Recently, the price of XRP has declined, largely due to the market’s reaction to widespread uncertainty surrounding ongoing legislation and regulation in the cryptocurrency industry.
If the SEC extends the filing of its principal preparations, it could impact XRP pricing. This move may create uncertainty as prolonged legal proceedings and delays in resolution may create negative sentiment in the eyes of investors.
XRP 24-hour chart (Source: CoinGecko)
Hourly increase in XRP price (Source: CoinGecko)
At the time of writing, the price of the XRP token is $0.5251, down 0.1% in the past 24 hours. On the contrary, XRP price has increased by 0.5% in the past hour, indicating investors’ optimistic sentiment. However, Team Ripple remains optimistic that the business will grow and get better with each passing day, as the CLO assured.
Ripple’s upcoming cross-appeal will be closely monitored as it could set a precedent for how crypto companies will be regulated in the future.
Also read: Will Hedera continue its downward trend: Key levels to watch
