The post Ripple files cross appeal in ongoing legal battle with SEC appeared on BitcoinEthereumNews.com.

Ripple files cross appeal, also known as Form C, that lists the issues the company plans to raise in the upcoming cross appeal against the U.S Securities and Exchange Commission. Ripple’s Chief Legal Office, Stuart Alderoty, announced on X that Ripple has filed a Civil Appeal Pre-Argument Statement, also known as Form C, on Oct. 25. The Form C is a document used to outline specific grounds on which the company challenges the previous ruling on institutional sales from the Southern District of New York court. In the filing, Ripple(XRP) stated that each point of appeal is subject to “de novo” standard of review, which means the court should re-examine its previous decisions based on how the law was applied. Ripple’s Form C filing comes a few days after SEC’s previous Form C filing on Oct. 18. The SEC asked the court to reconsider its decision to allow the sales of the XRP token on exchanges, as well as personal sales of the token by Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. One of the main subjects of appeal that Ripple raised was the district court’s application of the Howey test to Ripple’s XRP transfers. The company stated the transfers covered an investment of money in a common enterprise with a reasonable expectation of profits solely from Ripple’s efforts. Another point of appeal questions whether the court’s decision took into account Ripple’s lack of fair notice in its conduct. The company argued that the SEC’s statements on the application of federal securities laws for digital assets and digital currency as “inconsistent” and “deliberately vague.” Moreover, Ripple questioned whether an investment contract in accordance with Section 5 of the SEC Act of 1933 requires “essential ingredients” in the form of a contract that imposes post-sale obligations on the seller and…

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Filed under: News - @ October 25, 2024 11:24 am