Key Takeaways:
- Ripple CEO Brad Garlinghouse commits to fighting SEC’s appeal
- XRP’s non-security status remains unchanged despite the appeal
- Legal experts predict the case could extend into 2026
In a recent development in the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC), Ripple CEO Brad Garlinghouse has reaffirmed the company’s commitment to fight the SEC’s appeal in court.
Garlinghouse’s Stance on SEC Appeal
Garlinghouse took to social media platform X (formerly Twitter) to express his determination, stating:
“Somehow, they still haven’t gotten the message: they lost on everything that matters. While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today.”
The CEO emphasized that the appeal does not change XRP’s current legal status as a non-security.
Background of the Ripple vs. SEC Case
The legal dispute dates back to 2020 when the SEC filed a lawsuit against Ripple, alleging that the company sold unregistered securities through its XRP token. In July 2023, New York District Court Judge Analisa Torres ruled that XRP was not a security when sold on public crypto exchanges, marking a significant victory for Ripple.
However, the ruling also included a partial win for the SEC, stating that XRP sold to institutional investors should have followed securities laws. This resulted in a $125 million fine for Ripple, which was subsequently stayed as the SEC hinted at an appeal.
Ripple’s Legal Team Response
Stuart Alderoty, Ripple’s chief legal officer, described the SEC’s appeal as “disappointing, but not surprising.” He added that Ripple is considering filing a cross-appeal and maintained that the SEC’s lawsuit has been “irrational and misguided from the start.”
Potential Timeline for the Appeal Process
Legal expert Fred Rispoli, founder of Hodl Law, provided insights into the potential timeline for the appeal:
- SEC’s brief (and Ripple’s if they cross-appeal) due: Early 2025
- Responses to briefs due: March 2025
- Oral arguments: September or October 2025
- Ruling expected: January to April 2026
Impact on XRP Price
Following the news of the SEC’s appeal, XRP’s price experienced a significant drop:
- 24-hour price change: -10.2%
- Current trading price: Approximately $0.53
Conclusion
As the legal battle between Ripple and the SEC enters a new phase, the cryptocurrency community watches closely. The outcome of this case could have far-reaching implications for the broader crypto industry and regulatory landscape.