Coin World News Report:
Ripple intends to challenge the U.S. Securities and Exchange Commission (SEC) and has today filed a civil appeal using Form C. The blockchain-based digital payment network will specifically challenge the court’s previous ruling on its XRP token sales to institutions, hoping to clarify the classification of the token.
Ripple executives anticipate a positive outcome from the Second Circuit Court’s ruling.
On August 7th, District Judge Analisa Torres ruled that Ripple’s programmatic sales of XRP to retail customers did not violate federal securities laws and concluded that XRP is not a security. The SEC expressed dissatisfaction with the court’s ruling and filed an appeal, requesting that XRP be treated as a security.
Today, Ripple will also submit its Form C appeal to the U.S. Second Circuit Court of Appeals. The appeal will focus on the court’s ruling regarding its institutional sales, which were deemed unregistered securities transactions.
However, Ripple executives Brad Garlinghouse and Stuart Alderoty are optimistic about the submission of Form C, hoping to win the support of the SEC.
Brad Garlinghouse told reporter Eleanor Terrett:
“I have great confidence that we will win this appeal, and it really puts a dagger in the whole agenda around crypto regulation that Gary Gensler has. Honestly, Ali, I haven’t slept. I’m so confident because I believe we’re on the right side of the law. I think we’re on the right side of history.”
Stuart Alderoty shares the same belief as Garlinghouse, believing that they will once again win the support of regulatory agencies. Alderoty believes that the Second Circuit Court of Appeals has a track record of criticizing regulatory agencies and regulatory overreach, which increases their chances of winning.
Ripple Labs believes it should have engaged with U.S. regulatory agencies earlier.
At the DC Fintech Week conference, Ripple CEO Brad Garlinghouse told CNBC’s Tanaya Macheel that he feels his network should have reached out to regulatory agencies sooner. He claimed that his network delayed discussions with the SEC, made a mistake, and is now trying to recover from the losses and legal challenges.
However, Garlinghouse does blame SEC Chairman Gary Gensler for introducing U.S. cryptocurrency regulations late, believing that he has created obstacles for digital assets. He even accuses Senator Elizabeth Warren of distorting facts about cryptocurrencies and, in his post, shares his support for Republican candidate John Deaton.
