The Securities and Exchange Commission (SEC) of the United States has filed a formal appeal of the verdict in its XRP case against Ripple. The SEC submitted Form C to the United States Court of Appeals for the Second Circuit.
In the filing, the SEC challenged the court’s judgment that Ripple’s XRP sales on digital currency platforms were not unregistered securities, as well as the decision that Garlinghouse and Larsen’s transactions did not violate securities laws.
The SEC also opposes the decision that Ripple’s non-cash XRP distributions in exchange for services weren’t in breach of the Securities Act of 1933.
However, the official filing has raised many suspicions, as the SEC’s Form C is dated October 16 while the court’s file stamp on the document is October 17. It suggested that the SEC missed the deadline for appealing the ruling deadline.
Stuart Alderoty, Ripple’s Chief Legal Officer, responded to the filing by stating that the company will submit a Form C within the next week.
In terms of performance, $XRP fell 0.34% in the previous day and is now trading at 0.546, representing a 1.74% decrease.
Bitwise Updates XRP ETF Proposal, Refining Structure Amid Regulatory Uncertainty
Bitwise has amended its submission for the establishment of an XRP-based ETF by updating its S-1 registration with the SEC, which was filed on Thursday. The current filing refines the Trust’s structure, custody arrangements, and share creation and redemption methods.
This filing follows Bitwise’s initial S-1 form, which was filed on October 2. It was the company’s first formal attempt to introduce an XRP ETF to the US market. According to the petition, the XRP Custodian will primarily store the Trust’s assets in cold storage, with minimal amounts moved to hot storage as required for efficient basket creation and redemption.
The XRP Custody Agreement assures that the Trust’s assets are kept separate from the custodian’s other holdings. It will also improve the security of the private keys linked to XRP.
Bitwise has hired a Prime Execution Agent to facilitate XRP purchases and sales across several trading venues, including Bitstamp, Kraken, Coinbase, and LMAX, among others.
The agent’s function also includes providing short-term funding in the form of Trade Credits. This way, the order will be executed faster even when the Trust’s money or XRP is not readily available.
The Trust’s new structure specifies the procedure of generating and redeeming shares in blocks of 10,000 units, known as Baskets. The Basket Amount, or the necessary XRP per Basket, will be updated daily to account for collected fees and charges.
The firm is open about possible risks, for instance, if XRP is classed as a security, the Trust may be required to liquidate its assets under the terms of the Trust Agreement. The corporation has implemented measures in its amended filing to protect investors and comply with federal securities regulations.
The SEC’s judgment on the Ripple ruling appeal will be a critical factor in determining the Trust’s future route. It could eventually determine the fate of the Bitwise XRP ETF launch.
Ripple CEO Brad Garlinghouse Hints at Potential IPO, Timing Dependent on Legal Resolution
Ripple CEO Brad Garlinghouse recently discussed Ripple’s plans to go public on the Thinking Crypto podcast, hinting that an IPO may be on the horizon. “We’ve been thinking about it for a while, but the timing has to be right.”
An IPO is a natural progression for Ripple as we continue to grow, Garlinghouse explained. While no precise date was given, he intimated that once the legal issues are resolved, the company will be in a strong position to proceed with its public offering.
Ripple has been able to continue making acquisitions and investments without the need for public backing. While the business is not actively seeking an IPO, Garlinghouse stated that Ripple has kept its options open and remains committed to maintaining shareholder liquidity and proper company valuation. However, an IPO is currently a low-priority item on Ripple’s agenda.
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