The U.S. Securities and Exchange Commission (SEC) has initiated an appeal process regarding the court decisions related to the distribution of the XRP token issued by Ripple.

#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed the Civil Appeal Pre-Argument Statement (Form C) with attachments.https://t.co/LpSFIjMZhC
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 17, 2024

The regulator filed a preliminary appeal (Form C) with the court.

In December 2020, the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP worth $1.3 billion. The lawsuit also named CEO Brad Garlinghouse and co-founder Chris Larsen as defendants.

In July 2023, U.S. District Judge Analisa Torres ruled that programmatic sales of XRP do not constitute investment contracts. However, the court acknowledged that sales to institutional investors violated U.S. securities laws.

The SEC’s interim appeal was denied by the court due to a lack of evidence that could expedite the case’s resolution.

Later, the SEC withdrew the lawsuit against Garlinghouse and Larsen, reaching a settlement and removing additional charges.

In August 2024, the court fined Ripple $125 million, though the SEC had sought $2 billion. In October, the regulator appealed this decision.

By filing Form C, the SEC calls for a review of previous decisions regarding the sales of XRP on digital platforms, the involvement of Garlinghouse and Larsen in these processes, and the distribution of tokens in exchange for non-cash compensation.

“These issues require a re-evaluation,” the agency stated.

No surprises here — once again it’s been made clear. The Court’s ruling that “XRP is not a security” is NOT being appealed. That decision stands as the law of the land.

Stay tuned for Ripple’s Form C to be filed next week. https://t.co/m9molUGSBv
— Stuart Alderoty (@s_alderoty) October 18, 2024