Ripple, a San Francisco-based crypto payments company, has filed a cross-appeal against the U.S. Securities and Exchange Commission (SEC), aiming to ensure no aspect of its case is overlooked. The company submitted the cross-appeal in the U.S. District Court of New York, challenging the court’s final judgment from August 7, 2024.

Ripple Pushes Back After SEC’s Appeal

This move by Ripple comes shortly after the SEC filed its own appeal. Both the SEC and Ripple experienced partial victories in the court’s ruling. The court found Ripple guilty of violating securities laws through its institutional sales of XRP but determined the company’s programmatic sales and other distributions of the token were not investment contracts. 

Related article: Ripple’s Legal Struggles Continue as SEC Seeks to Challenge Ruling

As a result, Ripple was fined $125 million for its institutional sales and was ordered to seek SEC approval before conducting similar sales in the future. Ripple’s cross-appeal, however, indicates dissatisfaction with the court’s decision on its institutional sales. The company is now pushing to overturn this judgment in the U.S. Court of Appeals.

Combined Appeals Expected in Second Circuit

Both Ripple’s and the SEC’s appeals are likely to be combined into a single case in the Second Circuit Court of Appeals. Ripple has yet to file its formal cross-appeal brief, but Stuart Alderoty, Ripple’s Chief Legal Officer (CLO), hinted at the strategy behind the appeal. Ripple’s focus will be on the argument that an investment contract requires a clear contractual agreement outlining the rights and obligations of both parties.

Related article: Ripple v. SEC Lawsuit Nears Conclusion as Appeal Deadline Approaches 

While the SEC will not challenge the court’s ruling that XRP is not a security, Alderoty speculated that the SEC might still contest the decision on Ripple’s programmatic sales and other distributions. Previously, the court had denied the SEC’s request for an immediate appeal on these points.

Ripple’s CEO, Brad Garlinghouse, expressed frustration with the SEC, accusing it of creating chaos instead of providing regulatory clarity. He emphasized that Ripple’s cross-appeal aims to finally bring an end to the SEC’s enforcement-driven approach to crypto regulation.