SEC appeals XRP ruling, challenging Ripple's partial win
The U.S. Securities and Exchange Commission (SEC) has officially appealed the court’s ruling in the XRP (CRYPTO:XRP) case, reigniting the legal debate over whether XRP sales on cryptocurrency exchanges qualify as securities.
The SEC is challenging several key aspects of the July 2023 ruling, including decisions that cleared Ripple executives and non-cash XRP distributions.
This legal move could have significant implications for the future of cryptocurrency regulation in the U.S.
The appeal follows a partial victory for Ripple, where Judge Analisa Torres ruled that XRP sales on digital exchanges did not qualify as securities, though XRP sales to institutional investors were deemed unregistered securities.
Additionally, the court found that personal sales by Ripple executives, Brad Garlinghouse and Chris Larsen, did not violate securities laws.
In August, Ripple was ordered to pay over $125 million in civil penalties.
The SEC’s appeal, submitted to the U.S. Court of Appeals for the Second Circuit, disputes the court's conclusion that XRP sales on digital platforms were not securities and challenges the ruling on the executives’ personal sales.
The SEC also contests the court’s decision that Ripple’s non-cash XRP distributions, provided in exchange for services, did not breach the Securities Act of 1933.
At the time of writing, the XRP price was $0.5435.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
What needs to happen before bitcoin enters price discovery mode
BTC continues to smash expectations as it holds near $90,000