Ripple challenges SEC’s ruling on institutional XRP sales, claiming the Howey test was misapplied.
Ripple Labs has filed a Form C in the United States Court of Appeals for the Second Circuit, challenging a recent ruling from the US Securities and Exchange Commission, the company said.
Ripple’s chief legal officer, Stuart Alderoty, confirmed the filing in an X post on Oct. 25, adding that “the SEC can’t submit new evidence or ask [Ripple] to produce more.”
The filing follows an August decision by the US District Court for the Southern District of New York, which imposed a $125 million fine on Ripple for institutional XRP (XRP) sales, ruling that they constituted securities transactions.
