Ripple is escalating its legal battle with the Securities and Exchange Commission (SEC) by filing a new appeal in the XRP lawsuit. The blockchain-based payment network is seeking to challenge the court’s previous ruling on the classification of XRP and specifically its institutional sales.
In August, District Judge Analisa Torres ruled that Ripple’s sales of XRP to retail customers did not violate securities laws and determined that XRP is not a security. However, the SEC was dissatisfied with the ruling and filed an appeal to have XRP classified as a security.
Ripple is now submitting its appeal to the US Court of Appeals for the Second Circuit, focusing on the District Court’s ruling regarding its institutional sales, which were deemed unregistered securities transactions. Ripple’s executives, Brad Garlinghouse and Stuart Alderoty, are optimistic about the appeal’s outcome and believe it will put a dent in the SEC’s agenda for crypto regulation.
Garlinghouse expressed confidence in winning the appeal and stated that he believes Ripple is on the right side of the law and history. Alderoty shares the same belief and suggests that the Second Circuit’s previous criticism of regulators and regulatory overreach improves their chances of success.
During the DC Fintech Week conference, Garlinghouse admitted that Ripple should have engaged with regulators earlier. He acknowledged the mistake of delaying discussions with the SEC and emphasized that the company is now trying to recover from its legal challenges.
However, Garlinghouse also criticized SEC Chair Gary Gensler for introducing crypto regulations late in the United States, claiming it created obstacles for digital assets. He even called out Senator Elizabeth Warren for misrepresenting facts about cryptocurrencies and expressed support for Republican candidate John Deaton in one of his posts.