- The SEC has filed an appeal contesting the decision that XRP’s programmatic sales are not securities.
- Garlinghouse criticized the SEC for prolonging the legal battle, saying it has caused harm to investors.
- Ripple remains confident that the court’s ruling on XRP’s non-security status will prevail.
Ripple CEO Brad Garlinghouse has expressed his frustration with the U.S. Securities and Exchange Commission’s (SEC) decision to continue its legal battle against the company. The SEC recently filed a notice of appeal, contesting a federal judge’s ruling from 2023 that favored the firm in key aspects of its case.
On October 1, the SEC filed a notice of appeal to the Second Circuit, signaling its intent to challenge the court’s ruling in the ongoing case against Ripple. The appeal focuses on a 2023 decision by Judge Analisa Torres, which found that the firm’s programmatic sales of XRP were not securities transactions. However, the judge did rule that sales to institutional clients were securities, leading the SEC to appeal the part of the ruling related to programmatic sales.
The SEC’s appeal comes after the court rejected its previous request for an immediate appeal last year, following the judge’s final verdict in August. The final decision, considered a partial victory for both sides, set the stage for this latest legal maneuver.
Ripple CEO Reacts to SEC’s Stance
Reacting to the appeal, Garlinghouse expressed his disappointment, accusing the SEC of dragging the case unnecessarily. The Ripple CEO highlighted that the regulator’s actions have hurt U.S. investors and damaged its own credibility. According to Garlinghouse, the case has become a “losing battle” for the SEC, which continues to waste taxpayer money.
In Garlinghouse’s view, the court’s decision regarding XRP’s non-security status should stand as a victory for the industry. He emphasized that Ripple is prepared to continue the fight to protect this important ruling.
With the appeal now in motion, Ripple’s legal battle is far from over. However, Garlinghouse and his team remain optimistic that their victory will stand, benefiting not only Ripple but also the broader cryptocurrency ecosystem. The SEC has 70 days to file its appeal brief, prolonging the uncertainty for both Ripple and the crypto industry.
