Ripple's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) reached a critical moment in August when Judge Analisa Torres ruled that XRP sales on secondary markets to retail investors do not classify as securities transactions. However, Ripple was ordered to pay a $125 million fine for other violations. While the SEC initially sought $2 billion, Ripple's CEO labeled the ruling a victory.
In response, the SEC appealed the 2023 ruling, triggering uncertainty and a price dip for XRP. Ripple’s Chief Legal Officer, Stuart Alderoty, revealed that the company filed a cross-appeal to "ensure nothing’s left on the table," emphasizing that there can't be an "investment contract" without essential rights and obligations in place.
Alderoty also pointed out that the SEC does not dispute the court's ruling that XRP itself isn’t a security, adding that the regulator even apologized in another case for implying that a token could be considered a security.