Everyone in the crypto ecosystem is well aware about the legal saga between Ripple Labs and the SEC. This lawsuit took a turn this week when a lead plaintiff filed an appeal challenging the court’s recent decisions favoring Ripple. This adds another layer of complexity to the case. Let’s explore what is new in the lawsuit.
A New Chapter in the XRP Saga
The lead plaintiff, Bradley Sostack, isn’t ready to give up. He recently filed an appeal with the U.S. Court of Appeals for the Ninth Circuit. This move contests major decisions made on November 15, 2024, by a California court.
Source : Courtlistener
What’s on the table? A lot of things actually. The appeal takes aim at rulings on summary judgments, class action certifications, and even older dismissals. Sostack’s legal team is revisiting multiple issues, including Ripple’s legal wins for its executives and affiliates. The focus remains on securities law and how XRP, Ripple’s token, fits—or doesn’t fit—into those definitions.
This case isn’t just about Ripple anymore. It’s a test of how courts interpret digital assets under securities law. If the appeal gains traction, it might not just change Ripple’s future but also impact the entire cryptocurrency industry.
Ripple’s Legal Costs Draw Criticism
The battle now includes a debate over Ripple’s submitted legal costs. After getting significant victories, Ripple filed a report of its detailed legal expenses. The firm seeks reimbursement for legal fees and litigation related costs. The plaintiff is not happy with it and filed an objection asking the court not to decide anything until the appeal is resolved. They’ve even requested that the court either reduce the costs or reject them outright.
This has nothing to do with money but a tactical move to keep pressure on Ripple. Even after the win, this objection keeps the litigation alive and complicated.
What to Expect Next
So, what happens now? The case is heading to the Ninth Circuit Court of Appeals, where it’ll be reviewed again. For Ripple, it’s one more hurdle as the company also prepares for a critical SEC deadline on January 15.
Meanwhile, some in the crypto community are keeping an eye on SEC Chair Gary Gensler, who’s set to step down on January 20. Could his last days in office bring new challenges for Ripple? It’s hard to say, but the stakes couldn’t be higher.
Ripple’s wins in court have been significant. But this appeal could still shake things up, not just for Ripple but for the future of cryptocurrency regulations.
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