SEC Appeals XRP Ruling: Latest Chapter in Landmark Crypto Case
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has filed a last-minute
In a significant development for the cryptocurrency industry, the U.S. Securities and Exchange Commission (SEC) has filed a last-minute appeal in its ongoing legal battle with Ripple Labs, sending ripples through the digital asset market. The appeal, filed Thursday in the U.S. Court of Appeals for the Second Circuit, marks the latest chapter in this landmark case that has captured the attention of the crypto community.
Notably, the SEC is not contesting Judge Analisa Torres’ crucial July 2023 ruling that XRP sales to retail investors on digital platforms don’t constitute securities. Instead, the regulator is challenging other key aspects of the decision, including the court’s findings on Ripple’s offers and sales of XRP on digital asset trading platforms and personal sales by executives Bradley Garlinghouse and Christian Larsen.
The timing of the SEC’s appeal has sparked controversy within the crypto community, with users questioning whether the agency missed a critical 14-day window for filing its Form C. While the document is dated October 16, the Second Circuit’s docket shows a filing date of October 17, leading to speculation about procedural compliance.
Ripple’s Chief Legal Officer, Stuart Alderoty, responded to the development on social media, emphasizing, “No surprises here — once again, it’s been made clear. The Court’s ruling that ‘XRP is not a security’ is NOT being appealed. That decision stands as the law of the land.”
The market has responded to these developments with XRP currently trading at $0.54, showing a slight decline of 0.7% over the past 24 hours. This comes after the token reached a two-week high of $0.566 on October 17, demonstrating the market’s sensitivity to legal developments.
The case’s background includes a significant ruling from last year where Ripple was ordered to pay a $125 million civil penalty for institutional sales of XRP, which were found to have violated securities laws. However, the company secured a partial victory when the court determined that XRP sales to retail investors did not constitute securities violations.
As the case moves forward, the appeals court will review the challenged aspects de novo, meaning it will reconsider these legal issues from scratch without deference to the district court’s interpretations. Ripple is expected to file its own Form C next week, as indicated by Alderoty.
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