Ripple wants to make sure “nothing is left on the table.”
They hope that the Court of Appeals will “put a stake in the heart” of Gary Gensler’s actions.
In a calculated response, Ripple Labs through its chief legal officer Stuart Alderoty, has today filed a counterclaim against the United States Securities and Exchange Commission (SEC).
This legal action comes after the SEC announced in early October its intention to appeal a court decision which practically closed a long-standing dispute with the cryptocurrency company.
At the time, the SEC argued that the district court’s decision “conflicts with decades of Supreme Court precedent and securities laws.” This appeal announcement by the SEC led Alderoty to anticipate that Ripple You could file a cross appeal.
Now, with the presentation of the counter-appeal, Ripple seeks to secure “that nothing is left on the table,” according to Alderoty. This includes the argument that there cannot be an “investment contract” without there being essential contractual rights and obligations. This statement implies that for XRP to be considered a security, it must meet specific contract criteria which, according to Ripple, they do not occur in XRP transactions.
Cross-appeal is a legal strategy that allows Ripple to re-evaluate any new decisions that may arise from the SEC appeals process.thus ensuring that all relevant points of law are thoroughly reviewed.
However, the SEC omitted an essential form in its appeal against the Ripple case, which has generated more confusion and delays, as reported by CriptoNoticias. This could affect the proceeding of the SEC’s appeal.
Alderoty was clear in his statements: “The SEC lost on all key points, which is why it appealed.” Thus, it is likely that the agency will aim to question decisions regarding the sales of XRP on exchanges and other distributions, arguing that these should not be classified as values.
The litigation between Ripple and the SEC, active since late 2020, has been an emblematic case in the world of cryptocurrencies. Judge Analisa Torres ruled last year that XRP is not a security, a decision that was later accompanied by a $125 million fine for Ripple. Decisions that seemed to open the way to closing the case. However, the SEC’s decision to appeal has kept the conflict in court.
Thus, the presentation of the counterclaim by Ripple not only seeks to defend its interests, but could also set a precedent for the classification and regulation of other digital assets, influencing how the cryptocurrency industry evolves in the face of traditional financial regulation.
This article was created using artificial intelligence and edited by a human Editor.