Ripple Submits Form C for Cross Appeal Does the Possibility of Success Still Stand at 80
Ripple Labs has officially submitted a notice outlining the specific grounds for its appeal following a significant ruling against the company. Attorney Jeremy Hogan has shed light on the critical issues involved in this appeal, which could have far-reaching implications for Ripple and the wider cryptocurrency market.
One of the key questions Ripple is raising is whether an “investment contract” needs to be a formal legal contract. They believe that this issue is crucial for the crypto industry. While winning this argument will not overturn the $105 million judgment against them, it could potentially weaken the SEC’s enforcement power over other cryptocurrencies.
Additionally, Ripple is challenging whether it actually sold XRP as an “investment contract.” This allows them to reexamine the Howey test, a legal standard that helps determine what qualifies as an investment contract. If they are successful, it could lead to changes in the regulation of similar sales.
Ripple is also resurrecting its “Fair Notice Defense,” arguing that the SEC failed to provide clear guidelines. They contend that they should not be penalized for operating under ambiguous rules. A victory in this aspect of the case could provide protection for other crypto companies facing similar challenges.
Furthermore, Ripple is questioning the clarity of the injunction that instructs them to “follow the law.” They argue that this directive is too vague and creates uncertainty for their business. By appealing this point, Ripple aims to obtain clearer guidelines to navigate their operations.
When asked about Ripple’s chances of success in the appeal, Hogan expressed optimism, estimating an 80% probability of Ripple emerging from the appeal in a stronger position. He stated, “Sometimes, the distinction between ‘win’ and ‘lose’ in these cases is not clear-cut, but I do believe there is an 80% chance that Ripple will be in a better position after the appeal.”
Tags: Crypto news, Cryptocurrency, Ripple (XRP)