According to the pre-argument statement (Form C) filed by the U.S. Securities and Exchange Commission (SEC), the legal status of the controversial XRP cryptocurrency will not be targeted as part of the regulator's appeal in the Ripple case.
In a social media post, Stuart Alderoty, Ripple's chief legal officer, said that the court's ruling that XRP is not a security stands as "the law of the land."
What is being appealed?
As expected, the U.S. is targeting Ripple's sales of the XRP token on trading platforms and the use of XRP as a means of payment.
The SEC will once again go after Ripple CEO Brad Garlinghouse and Ripple co-founder Chris Larsen for allegedly aiding and abetting the aforementioned sales.
The appeal will also focus on the personal offers and sales of XRP made by the Ripple bosses as well as the distribution of XRP to employees.
As for the final judgment ruling, which was issued by Judge Analisa Torres in August, the SEC is not going to appeal the $125 monetary penalty that Ripple was ordered to pay.
Notably, the SEC also did not appeal the $0 ruling on disgorgement. Attorney Fred Rispoli claims that the SEC "wisely recognized" that the disgorgement was "a loser argument," which is why it decided against raising it as an appellate issue.
What are Ripple's chances?
According to legal expert Jeremy Hogan, Ripple has a 90% chance of winning at least one issue. Moreover, he sees an 80% chance of the company winning "both major issues."
That said, Ripple's odds will likely depend on the judges who get assigned the case.
The company also recently also filed its cross-appeal notice. Its Form C is expected to be filed in the near future.
Dan Burgin
Vladislav Sopov
