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Ripple Labs is appealing a 2023 court ruling that said institutional sales of the XRP token are unregistered security offerings.
The company filed a so-called Form C on Oct. 25 in the Court of Appeals for the Second Circuit, said Ripple’s chief legal officer Stuart Alderoty in a post on X. The form lays out the legal basis for Ripple’s challenge.
Questioning The Court’s Application Of The Howey Test
Ripple is specifically challenging the court’s application of the Howey test, which is a legal standard used to gauge whether a transaction qualifies as an investment contract or not.
#XRPCommunity #SECGov v. #Ripple #XRP @Ripple has filed the Civil Appeal Pre-Argument Statement (Form C). The relevant pages are below. pic.twitter.com/usm3fCjG20
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 25, 2024
Ripple Labs is also calling for a reassessment of what “essential ingredients” are needed for a transaction to be classified as an investment contract.
The “Hard Part” Of The SEC Lawsuit Is Behind Ripple
Alderoty said that the hard part of Ripple’s legal battle with the Securities and Exchange Commission (SEC) over the matter is behind the company now.
He said that the regulator’s “broader strategy” is to create “distraction and confusion for Ripple and the industry,” and is just background noise.
The SEC can no longer submit new evidence or ask Ripple Labs to produce more evidence, added Alderoty. He subsequently said that “all the drama” the company had in the litigation when the two parties fought over documents is now over.
According to Ripple’s legal chief, XRP is “uniquely situated” as having clarity in not being classified as a security. This ruling, which stands as “the law of the land,” is not being challenged by the SEC, he said.
Following the Form C filing by Ripple Labs, the company’s remittance token XRP recorded a slight 24-hour loss to trade at $0.5266 as of 8:10 a.m. EST.
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