Fox Business reporter Eleanor Terrett recently reported on X (formerly Twitter) that Ripple is preparing to submit its Civil Appeal Form C today, outlining its key arguments for appealing the SEC case in the Second Circuit Court. This comes after the SEC appealed nearly all aspects of its loss at the district court level last week.
Key Details of Ripple's Appeal Strategy
- Focus of Appeal: Ripple will likely only challenge the single ruling that went against them—the district court's determination that institutional sales of XRP constituted unregistered securities offerings.
- Confidence in Second Circuit: Ripple executives Brad Garlinghouse (CEO) and Stuart Alderoty (Chief Legal Officer) reiterated their strong belief in a favorable outcome during interviews in Miami last week.
Statements from Ripple Leadership
Stuart Alderoty's Legal Perspective:
"I felt good about our case at the district level, and for a host of reasons, I feel even better about our case in the Second Circuit. Historically, the Second Circuit hasn’t favored the SEC. They’re also skeptical of regulatory overreach. Statistically, the chance of a reversal if we lose is only about 10% or lower. As a litigator, I’m superstitious—I avoid predictions or guarantees—but I’m highly optimistic about the Second Circuit’s outcome. I believe they’ll not only uphold Judge Torres’ decision but potentially reinforce it. At that point, the SEC would face another loss and must decide whether to escalate to the Supreme Court."
Brad Garlinghouse's Strategic Outlook:
"I’m very confident we’ll win the appeal, which would deal a major blow to Gary Gensler’s entire crypto regulatory agenda. Honestly, I’m not worried at all. We’re on the right side of the law and history."
FAQ Section
1. What is Ripple appealing against the SEC?
Ripple is challenging the district court's ruling that its institutional XRP sales were unregistered securities transactions—the only aspect of the case they lost.
2. Why are Ripple executives confident about winning?
The Second Circuit Court has a track record of skepticism toward SEC actions and regulatory overreach, with a low reversal rate (~10%) for appealed cases.
3. Could this case reach the Supreme Court?
If the Second Circuit rules in Ripple’s favor, the SEC would need to decide whether to appeal further. Garlinghouse believes a win would significantly weaken the SEC’s stance on crypto regulation.
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Broader Implications
A favorable ruling for Ripple could:
- Set a precedent for how cryptocurrencies are classified as securities.
- Disrupt the SEC’s current enforcement-heavy approach under Chair Gensler.
- Boost market confidence in XRP and similar digital assets.
Note: This content is for informational purposes only and does not constitute financial or legal advice. Always conduct independent research before making investment decisions.