According to Odaily, the legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple has reached a pivotal stage as the case moves to the Second Circuit Court of Appeals. The SEC has removed the civil lawsuit related to Ripple from its website, signaling a significant development in the ongoing dispute over the classification of XRP. However, a user on X, claiming to be a lawyer, noted that the removal from the SEC's website is not crucial, as the appeal remains active in the national PACER court system. The user mentioned that the latest record shows Ripple requesting an extension for filing briefs, with the case status still marked as 'ongoing,' though changes may occur soon.
Ripple's legal team has officially requested to submit a response brief by April 16, 2025, as per documents filed by January 23, 2025. The SEC released its opening brief on January 15, 2025, aiming to overturn key aspects of a previous ruling, particularly concerning the sale of XRP to retail investors. The district court had previously determined that while XRP itself is not a security, Ripple's direct sales to institutional investors constituted securities transactions. Tokens sold through secondary trading platforms did not meet the securities criteria. The SEC now argues that retail investors expected profits based on Ripple's promotional activities.
Ripple CEO Brad Garlinghouse commented on the appeal, stating, "Doing the same thing over and over again and expecting different results." Ripple's Chief Legal Officer Stuart Alderoty described the appeal as a "rehash of already failed arguments." The initial $125 million civil penalty against Ripple remains in effect, significantly lower than the SEC's original demand of $1 billion. The outcome of this appeal is anticipated to impact the regulatory framework for digital assets and their classification in the United States.
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