Ripple Cross-Appeal Counters SEC as It Expands ‘Bank-Grade’ Custody Service

NAIROBI (CoinChapter.com)—Ripple has filed a cross-appeal in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC). The company aims to challenge the SEC’s attempts to overturn a previous ruling that declared XRP, Ripple’s native token, not a security.

The Ripple cross-appeal against SEC is being submitted to the U.S. Court of Appeals for the Second Circuit. Ripple intends to address all legal arguments, including the definition of an “investment contract.”

Ripple Cross-Appeal Targets SEC’s Legal Push

Stuart Alderoty, Ripple’s Chief Legal Officer, clarified that Ripple isn’t leaving any stone unturned. He pointed out that the SEC had already admitted it wouldn’t challenge the decision that XRP is not a security.

However, Ripple expects the SEC to revisit its claims over exchange token sales. Alderoty remains firm, stating that the regulator will likely fail again, just as previously.

Ripple CEO Brad Garlinghouse criticized the SEC’s approach, describing it as an attempt to create confusion rather than clarify regulatory guidelines for the crypto industry. He reiterated Ripple’s intent to continue leading the charge against the SEC’s “regulation-by-enforcement” strategy.

The case took a pivotal turn in Aug. when Judge Torres ruled that while Ripple must pay a $125 million fine for unregistered institutional sales of XRP, secondary market sales of the token did not violate securities laws.

Ripple Expands with ‘Bank-Grade’ Custody Solution Amid Legal Battle

While Ripple faces its ongoing legal battle, the company is expanding its business. Ripple has introduced new features to its crypto custody platform to meet financial institutions’ needs. The updated platform integrates XRP Ledger (XRPL) to enable the tokenization of real-world assets (RWA).

According to Ripple’s press release, the updates include transaction screening services, additional hardware security module (HSM) options, pre-configured policy frameworks, and an improved user interface.

Ripple’s Senior Vice President of Products, Aaron Slettehaugh, highlighted the platform’s focus on meeting banks’ strict security and compliance needs.

The demand for secure crypto custody is growing, with Boston Consulting Group predicting over $16 trillion in assets under custody by 2030. Ripple’s platform has seen a 250% increase in customers, including major institutions like BBVA Switzerland and Societe Generale – FORGE.

Ripple’s expansion into crypto custody services comes as global regulators develop frameworks for digital asset management. Taiwan’s Financial Supervisory Commission (FSC) plans to launch a sandbox for crypto custody in early 2025. Three private banks in Taiwan have already shown interest in entering this space.

Standard Chartered also initially launched its digital asset custody service in UAE with Bitcoin after receiving a license from the Dubai Financial Services Authority. Ripple’s now offering more services is in line with this shift. On the one hand, it continues to offer custody services while battling legal cases from the SEC.