SEC Appeals XRP Ruling, But Not Its Non-Security Status

• The SEC has filed File C, challenging rulings that cleared Ripple executives and non-cash XRP distributions.
• Stuart Alderoty states that the SEC hasn’t appealed the court’s decision on XRP’s non-security status.
• The SEC missed its deadline, drawing criticism from industry experts and community members.

The Securities and Exchange Commission (SEC) has filed a late appeal against the XRP ruling. 

Despite the delay, the SEC submitted Form C to the U.S. Court of Appeals for the Second Circuit on Thursday. The regulator is partly challenging the court decision, appealing the rulings that cleared Ripple executives and non-cash XRP distributions. Ripple’s Chief Legal Officer Stuart Alderoty highlighted that the SEC has not appealed the court’s decision on XRP’s non-security status.

No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land.

Stay tuned for Ripple’s Form C to be filed next week. https://t.co/m9molUGSBv

— Stuart Alderoty (@s_alderoty)
October 18, 2024

The SEC filed an appeal to Judge Analisa Torres’ judgment in the Ripple lawsuit on October 2, 2024. Alderoty described the appeal as “disappointing, but not surprising,” and it has led to speculation about the lawsuit continuing to drag on. The agency’s failure to file the crucial Form C, which details the appeal’s specifics, caused ambiguity and anxiety about the SEC’s strategies.

SEC Misses Deadline

The SEC’s deadline for the File C submission was reportedly October 16th. After the SEC missed this deadline, community members and industry experts criticized the agency. Coinbase’s chief lawyer, Paul Grewal, questioned whether the agency would take another three years to provide an explanation. Other prominent figures like MetaLawMan and Fred Rispoli also commented on the regulator’s untimely moves.

Read also: Bitwise Files Updated XRP ETF Registration With the SEC

The SEC updated its appeal and submitted File C on October 17th. While the updated filing does not challenge Judge Torres’ ruling that XRP is a non-security, the XRP community is hopeful about the case being resolved soon. Alderoty said the ruling remains unaffected, adding, “That decision stands as the law of the land.” Alderoty also stated that Ripple will file its Form C next week.

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