Ripple has just filed its Form C (declaration prior to argument in civil appeal). He wants the Court of Appeal to examine whether the The district court appropriately applied the Howey Test when evaluating its sales of XRP..

This filing suggests that Ripple intends to challenge Judge Torres’ application of the Howet test to sales of XRP to institutional clients.

Ripple files its Form C appeal

Ripple has moved forward in its counter-appeal against the US SEC, continue their long legal battle over the regulatory status of XRP. The company submitted its pre-argument civil appeal statement, Form C.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple filed the declaration prior to pleadings in the civil appeal (Form C). The relevant pages are below. pic.twitter.com/usm3fCjG20

– James K. Filan (@FilanLaw) October 25, 2024

This document describes the areas in which Ripple wishes to challenge the district court’s decision..

In its latest filing, Ripple requested a de novo standard of review. This means the Court of Appeal will treat the issue as a new case. without reference to the decision of the previous court (the District Court of New York).

Ripple wants the appeals court to review how the Howey test was applied in the previous ruling.

One of the main arguments in the appeal is how the district court applied the Howey test to Ripple XRP sales. Recall that the SEC argued that Ripple’s XRP sales constitute investment contracts because investors harbor reasonable expectations of profit based on Ripple’s efforts.

In July last year, US District Judge Analisa Torres ruled that Ripple’s institutional XRP sales constitute investment contracts while its programmatic distributions do not.

Another key aspect of the appeal is that the district court took Ripple’s lack of notice into account when making its decision. Previously, Ripple had argued that it did not knowingly violate securities law since it did not receive any fair notice from the SEC before conducting the XRP sales.

Additionally, Ripple wants to re-evaluate the requirements for classifying a transaction as an investment contract. The cross-appeal statement also asked the Court of Appeals to reevaluate the scope of the SEC’s injunction against Ripple.

The battle between Ripple and SEC continues

In an article X, Ripple CLO Stuart Alderoty commented on the Form C filing and shared a brief overview of the case. He is optimistic that the appeal process will go smoothly and its potential outcome will be positive.

Today, Ripple filed a Form C listing the issues we plan to raise in our cross-appeal. A few things to keep in mind as we move forward:

This is not about whether XRP, in and of itself, is a security. XRP is uniquely positioned to have the clarity (alongside BTC) of not being…

–Stuart Alderoty (@s_alderoty) October 25, 2024

He wrote: “The Court of Appeal is looking at the record that has already been set…and we have an excellent record. The SEC cannot submit new evidence or ask us to produce more. (Which means there won’t be all the drama we had in litigation when we were fighting over documents.)”

Furthermore, Alderoty emphasized that the non-security status of XRP is clear and established. He said the previous decision stood and the SEC was not challenging it..

Meanwhile, Ripple filed its Form C a week after the SECOND submitted its preliminary presentation. The SEC filed his Form C on October 17, one day after the due date, October 16.

The commission asked the Court of Appeals to reconsider whether the New York District Court erred in its ruling. He wants to know whether the district court’s decision regarding offers and sales of Ripples XRP on trading platforms is correct..