The U.S. Securities and Exchange Commission (SEC) has appealed a prior judgment in its ongoing lawsuit against Ripple Labs. The SEC submitted a 'Civil Appeal Pre-Argument Statement' or Form C, challenging Judge Analisa Torres' ruling on XRP, reigniting the debate over whether XRP sales are securities.

SEC Requests New Review

The SEC is seeking clarification on whether the United States District Court for the Southern District of New York made an error in the proceedings involving Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The agency also requested a 'de novo' review, meaning the court re-evaluates the decision based on legal application questions.

Ripple's Cross-Appeal

After the SEC's initial appeal, Ripple responded with a cross-appeal to ensure all issues were thoroughly examined, as explained by Ripple's Chief Legal Officer, Stuart Alderoty. He noted that the ruling that 'XRP is not a security' remains unchanged.

History and Current Case Status

The legal battle began in 2020 when the SEC accused Ripple of raising $1.3 billion through unregistered XRP sales. In a pivotal decision over a year ago, Judge Torres ruled that Ripple's programmatic XRP sales did not violate securities laws, but direct sales to institutional investors did. Ripple was ordered to pay $125 million in fines.

The Ripple case continues to impact the cryptocurrency market, highlighting the importance of legal clarity for crypto platforms and investors.