Ripple Awaits SEC’s Form C Appeal Filing: What’s the Hold-Up?

Ripple’s legal clash with the SEC intensifies as an appeal, looming cross-appeal, and XRP’s price volatility dominate investor attention.

Brad Garlinghouse holding an alarm clock, as Gary Gensler is hiding in the smoke.
Created by Kornelija Poderskytė from DailyCoin
  • The SEC has delayed filings, increasing pressure on Ripple.
  • Ripple has the option to counter-appeal as the SEC remains adamant.
  • XRP supporters have anticipated the SEC’s appeal could hinder Ripple.

Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) has taken yet another twist, with the SEC recently filing a notice of appeal. This move comes just two months after Judge Analisa Torres ruled on the long-standing case, potentially prolonging the four-year dispute. 

As the crypto world watches, Ripple’s supporters and XRP investors are bracing for further developments. The SEC has yet to submit its Form C, a crucial document that outlines the specifics of its appeal. This delay adds to the uncertainty surrounding the case, as Ripple awaits the filing to determine its next steps. 

Ripple’s Cross-Appeal May Shake Up SEC Battle

Ripple has the option to file a cross-appeal within 14 days of the SEC’s submission, which could further complicate proceedings. Meanwhile, the XRP community is closely monitoring the situation, hoping for a resolution that favors the cryptocurrency’s continued growth and adoption.

Sponsored

October began with a rollercoaster of events for XRP. In a positive turn, Bitwise filed for an S-1 to launch an XRP exchange-traded fund (ETF), a move seen as a bullish indicator for the cryptocurrency. However, the optimism was short-lived as the SEC’s appeal sent shockwaves through the market, causing XRP’s price to drop by over 20%. 

Currently trading at $0.522, XRP is struggling to regain its footing, hovering near its recent lows. Judge Torres’ initial ruling provided a mixed outcome for Ripple. She concluded that Ripple’s programmatic sales did not constitute securities violations, though she did rule against the company in terms of institutional sales. 

Crucially, her decision affirmed that XRP itself is not inherently a security, a point that the SEC is now challenging. This appeal has triggered frustration within the XRP community, with many viewing it as a retaliatory move.

Ripple CEO on XRP as Price Eyes Reversal

Ripple’s leadership has expressed disappointment with the SEC’s decision. CEO Brad Garlinghouse reaffirmed that XRP’s non-security status remains intact, despite the ongoing legal battles. 

Chief Legal Officer Stuart Alderoty called the SEC’s actions “disappointing but expected,” while investor Bill Morgan criticized the appeal’s timing, as many anticipate a market upswing. Despite the turbulence, market sentiment remains divided. 

Some investors fear further price declines due to these recent developments. However, others maintain a bullish outlook, pointing to Bitwise’s ETF filing as a more critical factor and suggesting that, if XRP can hold support at $0.54, a bullish reversal may be on the horizon.

On the Flipside

  • The appeal may reflect SEC concerns about losing authority over crypto regulation.
  • A cross-appeal could increase legal costs and extend market uncertainty.
  • While promising, an ETF doesn’t guarantee XRP’s long-term price stability.

Why This Matters

The SEC’s appeal in the Ripple case highlights ongoing regulatory uncertainties that could impact not only XRP, but the crypto market as a whole. This battle, with potential implications for XRP’s status, serves as a key indicator of how regulatory bodies may approach crypto classifications, making it a pivotal moment for all crypto stakeholders.

To learn more about the potential timeline and implications of the Ripple vs. SEC legal battle, read here:
Ripple vs SEC Legal Battle Could Extend to 2027—Here’s Why

To learn more about Ripple’s perspective on the SEC appeal and its potential impact on the crypto industry, read here:
Why Ripple Thinks the SEC Appeal is a Misstep and Won’t Succeed

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a reporter for DailyCoin covering all Ripple (XRP) developments and market analysis. Kyle's has major XRP holdings, moderate in Solana and Ethereum, and minor holdings across 20+ other cryptocurrencies.

Read more