Blockchain payments services company Ripple has intensified its defense against the United States Securities and Exchange Commission (SEC). As part of its efforts to challenge a recent ruling, Ripple submitted a Civil Appeal Pre-Argument Statement (Form C) at the United States Court of Appeals for the Second Circuit.
In a post on X, Ripple’s Chief Legal Officer Stuart Alderoty announced the filing, noting that the form lists issues the company plans to raise at its cross-appeal. The Form C filing follows a $125 million fine imposed on Ripple by the US District Court for the Southern District of New York for the company’s institutional sale of XRP tokens, considered securities transactions.
Though XRP is already the seventh-largest cryptocurrency according to data from CoinMarketCap, a resolution in Ripple’s favor will increase the asset’s adoption across the board. For instance, XRP is already commonly used for cross-border payments, serving as the bridge token between two assets in a transaction. In addition, players at online casinos are also rolling the XRP dice by using the token for deposits, withdrawals, and wagers. With various games and instantaneous transactions, these platforms enable players to maximize XRP’s speed and efficiency.
Ripple Says SEC is Causing Distraction and Confusion in the Industry
According to Alderoty’s post, the SEC case is not about whether XRP is a security. He points out that the SEC is not disputing the ruling that disqualifies the private sale of XRP as a security offering. Alderoty also adds that the SEC “can’t submit new evidence or ask us to produce more,” explaining that there will be no document showdown.
However, as many other cryptocurrency companies and stakeholders have said, Alderoty said the SEC is deliberately stifling the sector. Nonetheless, he believes that the worst days are over:
“As we go through this process, please remember the SEC’s broader strategy: try to create distraction and confusion for Ripple and the industry. But honestly, it’s just background noise now. The hard part of the fight is behind us. Ripple’s business is growing and getting stronger daily even as this appeal process continues.”
Ripple is appealing the District Court’s conclusion that institutional XRP sales to accredited investors are securities transactions. The company is disputing the court’s method of applying the Howey Test, a long-used standard test with rules that help determine whether a transaction qualifies as an investment contract and if US securities laws would govern it. Despite the drawn-out court battle, Alderoty remains optimistic.
The SEC had appealed the District Court’s summary judgment, asking the court to review its conclusion on the sale of XRP on cryptocurrency exchanges. The appeal also questions the personal XRP sales transactions conducted by CEO Brand Garlinghouse and Ripple co-founder Chris Larsen.
Last July, Judge Analisa Torres partially ruled for Ripple, ruling that private sales of XRP on crypto exchanges do not constitute securities transactions. This was the first time a crypto company had won a case brought by the SEC.
XRP Set for Large Spike in December
XRP analysis shows that the token is primed for a major breakout before the end of the year. According to crypto analyst The Block Bull, the breakout is plausible because of typical XRP action noticed since 2015. The analyst’s chart data indicates a consolidation pattern before the first major breakout in 2017. At the time, the asset’s trading volume hit 711.25 million, and price action spiked after consolidating for 36 weeks. This saw XRP spike more than 62,000%, from $0.0053 in February 2017 to $3.31 in January 2018.
The analyst also showed a second 36-week consolidation in May 2020 and saw XRP’s trading volume hit 1.915 billion tokens. According to The Block Bull, XRP is concluding another consolidation phase, which is expected to end in December, when the token will surge again.
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