The central issue at hand is whether XRP sales on cryptocurrency exchanges should be classified as securities. The SEC's original lawsuit accused Ripple of violating the Securities Act of 1933 by selling XRP without proper registration. Now, the SEC seeks a “de novo” review, meaning the court would reevaluate the case with fresh scrutiny, focusing particularly on Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen.
Ripple’s Chief Legal Officer, Stuart Alderoty, responded to the SEC's filing, confirming that Ripple would file its Form C next week. He emphasized that the Court's decision that "XRP is not a security" remains intact and is not under appeal.