Ripple’s Chief Legal Officer Stuart Alderoty has outlined the next steps in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). The case, which began in 2020, centers on whether XRP should be classified as a security and if Ripple conducted unregistered sales of the token.

As the legal proceedings enter the appeals phase, both Ripple and the SEC are gearing up for a prolonged process that could extend into 2026. Alderoty provided a detailed timeline of the upcoming events at Ripple’s annual Swell conference.

The SEC is required to file Form C by October 16, 2024, specifying the aspects of the case it intends to pursue. Ripple will follow suit two weeks later with its own Form C, presenting its cross-appeal. The company plans to challenge specific provisions of the original ruling that deemed certain institutional XRP sales as unregistered securities transactions.

Following the Form C filings, both parties will establish a briefing schedule. The SEC’s initial brief is due within 90 days, with the regulatory body expected to utilize the full time allotment. This puts the SEC’s first brief submission around mid-January 2025. Ripple will then file its response and its own brief. This process of briefing and replying is anticipated to continue until mid-2025.

Despite the lengthy timeline, Alderoty expressed confidence in Ripple’s legal position. He stated that the company feels even more assured in its stance before the U.S. Court of Appeals for the Second Circuit than it did in the Southern District of New York. Alderoty predicted that the appeal could backfire on the SEC, noting that the majority of appeals in the Second Circuit typically uphold rather than overturn district court decisions.

Ripple’s cross-appeal will focus specifically on the portion of Judge Analisa Torres’ ruling that found institutional sales of XRP by the company violated securities laws. While the judge ruled that retail sales of XRP did not constitute unregistered securities offerings, she ruled against Ripple on institutional sales.

The company intends to argue that these institutional sales did not involve “investment contracts” due to the absence of specific rights and obligations – a crucial legal factor in determining whether a financial product qualifies as a security under U.S. law.

Alderoty emphasized that Ripple is aiming to establish a legal precedent clarifying this distinction. He acknowledged that regardless of which side prevails, the Second Circuit’s ruling could provide much-needed clarity for the cryptocurrency industry.

In addition to its ongoing legal battle, Ripple continues to expand its global operations. At the Swell event, the company also announced the launch of its new stablecoin, RLUSD. This dollar-denominated token is designed to facilitate faster and more cost-effective cross-border payments. The stablecoin will be issued under New York’s strict regulatory framework, potentially giving it an advantage in terms of compliance, especially as other stablecoins face increased scrutiny.