The SEC has formally filed the Form C in its ongoing lawsuit against Ripple Labs Inc. This comes amid confusion over the market regulator’s missed Form C filing deadline.
SEC vs. Ripple Appeal Enters Next Phase
The SEC’s securities lawsuit against Ripple has been controversial. After Judge Torres ordered Ripple to pay a $125 million fine in August, many thought the case was over. However, the SEC filed a Notice of Appeal in opposition to the ruling. At the time, it was unclear exactly which part of the case the SEC planned to appeal. By filing Form C, the regulator made it clear that it wanted to challenge the court’s summary judgment or summary judgment.
According to Fox Business journalist Eleanor Terrett, some of the issues the SEC is seeking to appeal include the sale of XRP on secondary exchanges. Additionally, the SEC is also expected to challenge Brad Garlinghouse and Chris Larsen’s role in the Ripple lawsuit regarding the promotion of XRP sales.
Although the SEC has closed its case against Garlinghouse and Chris Larsen, it is likely that they will continue to challenge the two’s personal XRP offers and sales. Finally, the market regulator is also challenging Ripple’s provision of XRP to employees.
One aspect that the SEC did not dispute in the recent ruling is the $125 million civil penalty. It is unclear at this time how the case will proceed, as this aspect of the ruling could complicate the entire case.
Next Steps to Watch
With the SEC’s appeal now formalized, Ripple will likely file its own Form C in the coming days. The blockchain payments company is making this filing because it has filed a notice of cross-appeal to the SEC’s claims in the case. Ripple’s chief legal officer, Stuart Alderoty, has suggested that the goal of this cross-appeal is to put an end to the SEC’s enforcement tactics.
There are currently many predictions about how the case will proceed. However, some predict that Ripple could lose another appeal, based on its limited success rate in the 2nd Circuit Court of Appeals.
