RippleintendstocountertheSEC,submittingitsFormCcivilappealtoday.Theblockchain-baseddigitalpaymentnetworkwillparticularlychallengethecourt’spreviousrulingonitsXRPinstitutionalsales,wantingclarityoverthetoken’sclassification.

Ripple’sexecutivesanticipatepositiveresultsfromtheSecondCircuit’sruling

OnAugust7,DistrictJudgeAnalisaTorresruledthatRipple’sprogrammaticsalesofXRPtoretailcustomersdidnotbreachfederalsecuritieslaws,concludingthatXRPisnotasecurity.TheSecurityandExchangesCommissiondissatisfiedwiththecourt’sruling,filedanappealtohaveXRPtreatedasasecurity.

Today,RippleisalsoexpectedtosubmititsFormCappealtotheUSCourtofAppealsfortheSecondCircuit.TheappealwillfocusontheDistrictCourt’srulingonitsinstitutionalsales,whichwereconsideredunregisteredsecuritiestransactions.

TheFormCfiling,however,hasRipple’sexecutivesBradGarlinghouseandStuartAlderotyoptimistic,eyeingawinovertheUScommission.

BradGarlinghousetoldJournalistEleanorTerrett:

Iamsoconfidentthatwe’regoingtowintheappeal,andthatwouldreallyputadaggerinGaryGensler’swholeagendaaroundcryptoregulation.Honestly,Ellie,I’mnotlosinganysleepoveritatall.I’msoconfidentaboutitbecauseIbelievewe’reontherightsideofthelaw.Ithinkwe’reontherightsideofhistory.

~BradGarlinghouse

StuartAlderotyalsosharedthesameconvictionswithGarlinghouse,believingtheywouldaddanotherwinovertheregulator.AlderotyarguedthattheSecondCircuithasatrackrecordofbeingcriticalofregulatorsandregulatoryoverreachraisingtheirwinningchances.

RippleLabsfeelsitshouldhavespokentoUSregulatorsmuchearlier

AttheDCFintechWeekconference,Ripple’sCEOBradGarlinghousetoldCNBC’sTanayaMacheelthathefeelshisnetworkshouldhavereachedouttoregulatorssooner.HeclaimedhisnetworkmadeamistakebydelayingdiscussionswiththeUScommissionandisonlynowtryingtorecoverfromitslossesandlegalchallenges.

However,GarlinghousedidblameSECchairGaryGenslerforthelateintroductionofcryptoregulationsintheUnitedStates,arguingthathebroughtuphurdlesfordigitalassets.HeevencalledoutSenatorElizabethWarrenformisrepresentingfactsoncryptocurrenciesand,inoneofhisposts,sharedhissupportforRepublicancandidateJohnDeatoninstead.

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