Ripple Labs has formally filed a cross-appeal in its ongoing legal battle with the US Securities and Exchange Commission (SEC). The cross-appeal seeks to review the August 7, 2023 court ruling that mandated Ripple to pay penalties for violations.

Reasons for Ripple's Cross-Appeal

On October 10, Ripple submitted a notice of cross-appeal to the US Court of Appeals for the Second Circuit. This legal move aims to review the previous court decision regarding Ripple's alleged securities law violations. Previously, the SEC had appealed the court's ruling, leading to increased pressure on both sides.

Court Ruling and Penalties

The court ordered Ripple Labs to pay a $125 million penalty. Initially, the SEC requested a $2 billion fine, while Ripple argued that any penalty should not exceed $10 million. In July 2023, the court also ruled that Ripple's sales of XRP to institutional investors violated securities laws, while its broader programmatic sales and internal distributions did not.

Impact on XRP Status and Next Steps

Ripple's Chief Legal Officer Stuart Alderoty emphasized that the SEC will not appeal the ruling that XRP is not a security. Further arguments from both sides are expected in the coming weeks, though the timeline for these proceedings remains uncertain.

Ripple's cross-appeal adds a new chapter to its long-standing legal dispute with the SEC. Both parties are steadfast in their positions, and the outcome could shape the future legal status of cryptocurrencies in the US.