- XRP price drops 11% to $0.5375 after SEC files appeal before the October 7 deadline.
- Ripple considers a cross-appeal against $125M penalty from SEC’s institutional sales ruling.
- SEC’s Enforcement Director resigns just before the agency’s appeal, adding complexity to the XRP case.
SEC filed a notice of appeal with the Second Circuit Court of Appeals, and XRP immediately dropped 11% to $0.5375. That is after a July 2023 ruling by Judge Analisa Torres that Ripple violated federal securities law by selling XRP through institutional sales for a $125 million penalty.
SEC Legal Actions Ripple Considers Cross-Appeal
Ripple is considering a cross-appeal since the SEC appealed its decision. The company decided to challenge the $125 million penalty, and the court ruled that the sales of XRP for institutions’ benefit were securities violations.
Stuart Alderoty, Ripple’s Senior Legal Officer, has been frustrated with the SEC’s fight, saying it is embarrassing. In the combined case before the U.S. Court of Appeals for the Second Circuit, Ripple may appeal with its cross appeal.
After the SEC’s appeal, XRP immediately dropped by 11 %. At press time, XRP traded at $05331. The decline comes even as Bitwise recently filed for an XRP exchange-traded fund (ETF). The market analysts continue to divide over XRP’s future price trends, with some believing the appeal wouldn’t affect the long-term market trends.
Resignations Add Complexity to SEC’s Case Against Ripple
The agency’s Director of Enforcement, Gurbir Grewal, resigned one hour before it documented its appeal. Grewal’s departure from the SEC has been widely attributed to his role as the face of crypto regulation under the SEC, and his departure has prompted questions about how the SEC will chart a new direction.
Like CEO Brad Garlinghouse, Ripple leadership has consistently criticized the SEC’s conduct, describing the agency as wasting resources on a bad, losing case. Ripple response: The SEC’s continued pursuit does not affect Ripple’s belief that XRP’s non-security status stands for programmatic sales.
