The Ripple Labs vs. United States Securities and Exchange Commission (SEC) saga continues, with both sides gearing up for a high-stakes appeal clash in the second quarter of 2024. In a series of letters to Judge Torres of the US District Court For the Southern District of New York, both Ripple and the SEC have outlined their intentions to move forward with the appeal during this period, yet their availability windows seem to be at odds.
Ripple, the blockchain company behind the XRP cryptocurrency, has demonstrated its flexibility, offering an open calendar for trial proceedings during Q2 2024. Brad Garlinghouse, CEO of Ripple, has vocalized his confidence that an appeal would only serve to further establish that XRP is not a security, asserting that the digital asset is more akin to Bitcoin and Ethereum in terms of regulatory standing.
On the other side of the ring, the SEC has provided its availability with some constraints. The regulatory body has identified 19 days over the quarter when it’s not available for trial proceedings, accounting for around 21% of the period. Despite this availability clash, both Ripple and the SEC remain steadfast in their determination to present their cases.
This latest chapter follows the court’s August 17 approval of the SEC’s request to file an interlocutory appeal, a move that followed the partial victory for both parties in a July 13 ruling. This ruling classified XRP as a security when involved in institutional sales, while exempting it from this classification in sales to individual investors. The SEC, however, intends to challenge this verdict, asserting that XRP should be considered a security in all transactions.
The legal battle between Ripple and the SEC began in December 2020, stretching across a 2.5-year period. The recent ruling brought a sigh of relief to the crypto industry, but the SEC’s swift declaration to contest the decision through an appeal demonstrates their commitment to their stance. The implications of this appeal could extend beyond the Ripple case, possibly affecting the ongoing legal actions against major crypto exchanges Binance and Coinbase, which are grappling with similar security-related allegations.
The clash continues, with the appeal date set in stone, and both parties preparing to present their arguments once again. Meanwhile, Ripple, having reportedly spent around $200 million on legal expenses during this legal tug-of-war, is steadfast in its pursuit of regulatory clarity and a resolution to the ongoing conflict.