SEC vs Ripple: Ripple’s possible counter-appeal adds new chapter to case

The legal battle between Ripple and the US Securities and Exchange Commission (SEC) seems endless. After four years, the case is getting a new chapter because the SEC has decided to appeal against previous rulings.

However, Ripple is not giving up and appears to be preparing for a counter-offensive. Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), has indicated that the company is considering challenging certain aspects of Judge Analisa Torres’ ruling.

Judge Torres determined in her ruling that the sale of XRP is not covered by securities law. On the other hand, direct sales of XRP to institutional investors were covered by this legislation, according to Torres. This ultimately led to a $125 million fine for Ripple. However, the company is now considering appealing against this decision and the fine imposed.

Ripple dissatisfied with fine and verdict

In a possible counter appeal, Ripple wants to focus on two important parts of the ruling. First, the company wants to challenge the judgment regarding the direct sale of XRP to institutional investors, and second, the fine associated with it.

Although the judge significantly reduced the SEC’s proposed $2 billion fine to $125 million, Ripple remains dissatisfied. The company disagrees with both the fine and the ban on future institutional sales without registration.

Joint appeal

According to journalist Eleanor Terrett, both the SEC’s appeal and Ripple’s possible counter-appeal would be heard together at the US Court of Appeals. This would simplify the legal procedure and avoid further delays. Whether Ripple will actually file a counter-appeal remains to be seen. The company still has 14 days to file a formal defense.