Here’s What Ripple Is Appealing in SEC Case

San Francisco-based enterprise blockchain firm Ripple has filed its pre-appeal statement (Form C), outlining the specific issues that it plans to raise on its cross-appeal. 

The company is appealing whether an investment contract can be actually classified as a legal contract. Attorney Jeremy Hogan, who has gained a significant following within the XRP community, has commented that Ripple winning on this issue would rather benefit the broader industry instead of the company itself. As noted by Hogan, Ripple’s XRP sales were the subject of an actual contract.

As expected, Ripple is going to reargue the basics of the Howey test, a legal framework that has been used for decades in order to determine whether or not certain transactions can be classified as an investment contract. 

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The company has also revived its “fair notice” defense, which was rejected by the court as to institutional sales last July.  

Ripple will also target the injunction issued as part of the August final judgment that bars the company from selling unregistered securities in the future. According to Hogan, Ripple does not want the injunction to hang over its business.  

As reported by U.Today, Stuart Alderoty, Ripple’s chief legal officer, recently predicted that the initial ruling could end up being expanded. 

While commenting on the Form C filing, the CLO has also stressed that XRP’s legal status will not be targeted by the regulator. “The SEC is not challenging that ruling which stands as the law of the land,” he said. 

He has also slammed the SEC for trying to “create distraction and confusion” while also downplaying its appeal as “background noise.”