Ripple Labs Files Cross-Appeal

Ripple Labs has filed a cross-appeal in response to ongoing litigation from the U.S. Securities and Exchange Commission (SEC) that began nearly four years ago.

On Thursday, Ripple submitted its "notice of cross-appeal" to the U.S. Court of Appeals for the Second Circuit, following the SEC's announcement of an appeal regarding a previous judgment.

Stuart Alderoty, Ripple's chief legal officer, stated, "Today, Ripple filed a cross-appeal to ensure nothing’s left on the table, including the argument that there can’t be an 'investment contract' without essential rights and obligations found in a contract," in a post on X.

In 2020, the SEC accused Ripple of raising $1.3 billion through the sale of XRP, claiming it is an unregistered security. Over a year ago, Judge Analisa Torres ruled that some of Ripple’s automated, or programmatic, sales of XRP did not violate securities laws due to a blind bid process. However, she determined that other direct sales to institutional investors were indeed securities. Furthermore, in August, Judge Torres ordered Ripple to pay a $125 million fine.

Previously, the SEC attempted to secure an interlocutory appeal last year, but Judge Torres rejected it, stating that the agency failed to demonstrate that the appeal would materially advance the litigation's ultimate termination.