Ripple files Form C, appeals SEC ruling on XRP institutional sales
2024-10-25

Ripple Labs has filed its Form C in the United States Court of Appeals for the Second Circut, challenging a recent ruling from the US Securities and Exchange Commission, the company has confirmed.
Ripple’s chief legal officer, Stuart Alderoty, confirmed the filing in an X post on Oct. 25, adding that “the SEC can’t submit new evidence or ask [Ripple] to produce more.”
The filing follows an August decision by the US District Court for the Southern District of New York, which imposed a $125 million fine on Ripple for institutional XRP XRPUSD sales, ruling that these sales constituted securities transactions.
Contesting institutional sales ruling
Ripple’s appeal disputes the district court’s determination that its institutional sales of XRP made directly to accredited investors were securities transactions. 
The appeal specifically contests the court’s application of the Howey test, a legal standard used to determine whether a transaction qualifies as an investment contract.
The appeal questions explicitly the court’s application of the Howey test, a standard for determining whether a transaction qualifies as an investment contract.
Legal strategy and appeal process 
Ripple’s Form C filing lays the legal grounds for its appeal, requesting a de novo review of the case.
A de novo review allows the appeals court to re-examine the legal interpretations made by the district court without deferring to its previous conclusions.
Alderoty, having expressed optimism in his X post about the appeal, said the SEC’s strategy of “distraction and confusion for Ripple and the industry” is “just background noise now.”
SEC filing against Ripple
Ripple’s filing follows an Oct. 16 appeal from the SEC that questioned the district court’s partial summary judgment favoring Ripple.
The SEC’s appeal, however, did not contest the ruling that XRP isn’t a security for programmatic sales on digital asset exchanges. Instead, it sought a review of the court’s application of securities law in institutional sales.
Judge Analisa Torres of the US District Court for the Southern District of New York ruled partially in favor of Ripple Labs in July 2023, deciding that XRP is not a security when sold programmatically on digital asset exchanges.