The ongoing SEC Vs Ripple case has entered another critical phase with the U.S. Securities and Exchange Commission (SEC) officially filing a Civil Appeal pre-argument statement, also known as Form C. This latest move has created fresh uncertainty, leaving many in the cryptocurrency community wondering about the future of the case. The missed deadline for the Form C filing had previously confused many, but now the legal battle continues with this last-minute submission.
SEC Vs Ripple: Contesting the Court’s Ruling
The lawsuit, which centers on whether Ripple’s sale of XRP tokens constitutes an unregistered securities offering, has been highly controversial. Earlier this year, Judge Torres ruled that Ripple should pay a $125 million penalty. While some believed this would be the end of the lawsuit, the SEC quickly filed a Notice of Appeal, signaling its intention to challenge certain parts of the ruling.
According to the post dated Oct. 18 on X (Formerly Twitter) by Fox Business journalist Eleanor Terrett, the latest Form C filing has revealed more about the SEC’s strategy in the SEC Vs Ripple case. The regulator is focusing on several key areas, including the programmatic sales of XRP on secondary exchanges and the roles of Ripple’s executives, Brad Garlinghouse and Chris Larsen, in the sale of XRP. These aspects of the lawsuit will be critical in determining its outcome.
Key Aspects of the SEC’s Appeal
In the SEC Vs Ripple case, one of the most significant points the SEC aims to contest is the ruling related to Ripple’s programmatic sales of XRP. The regulator argues that these sales violated securities laws and believes the court’s decision on this matter should be reconsidered. Additionally, the SEC is revisiting the involvement of Ripple’s leadership in the promotion and sale of XRP.
Though the SEC had previously settled with both Garlinghouse and Larsen, it appears the regulator is not entirely done with their cases. The appeal may also address the sale of XRP to Ripple employees, another point of contention in the ongoing lawsuit.
However, the $125 million civil penalty that Ripple was ordered to pay remains unchallenged by the SEC, even as it moves forward with its broader appeal. This leaves some uncertainty around how the case will proceed, with many legal experts speculating on the potential outcomes.
Ripple’s Next Move: Filing a Cross-Appeal
With the SEC’s appeal now formally in motion, Ripple is preparing to respond. The blockchain payments company is expected to file its own Form C soon, as it has already submitted a notice of cross-appeal. According to Ripple’s Chief Legal Officer, Stuart Alderoty, the purpose of the cross-appeal is to combat what Ripple views as the SEC’s “regulation by enforcement” strategy.

Observers are keeping a close watch on how this legal battle will evolve. While there is optimism among Ripple supporters, some analysts predict that Ripple may face difficulties at the U.S. Court of Appeals for the Second Circuit, which historically has not been favorable to similar cases.
What’s Next for SEC Vs Ripple?
As the legal battle intensifies, the outcome of the SEC’s appeal could set a precedent for how cryptocurrency companies are regulated in the U.S. Should the court side with the SEC, Ripple could face additional penalties and tighter restrictions on its operations. Conversely, a victory for Ripple could challenge the way the SEC approaches crypto regulation going forward.
While the future remains uncertain, one thing is clear: the SEC vs Ripple lawsuit is far from over, and its impact on the broader cryptocurrency market could be profound.
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