NewsRipple News: SEC Files Appeal, Targets XRP Sales
Vijay Gir18 Oct 20242 min read
The crypto world is abuzz with the latest development in everyone’s favourite legal drama.
The U.S. Securities and Exchange Commission (SEC) officially submitted Form C on October 17, following online speculation about whether they missed the deadline. As we reported yesterday, they did not. Now that the appeal is officially in, let’s explore what it means for the Ripple Vs Sec case.
Keep reading.
Ripple’s Victory Could Be Short-Lived
In July 2023, Judge Analisa Torres ruled that Ripple’s sale of XRP to retail investors was not a security. However, she found that XRP’s institutional sales did count as securities. On August 7, she confirmed this decision and fined Ripple Labs $125 million. The SEC, meanwhile, wanted all XRP sales to fall under securities law and asked for a $2 billion fine. Judge Torres rejected this, marking a major loss for the SEC.
What the SEC’s Appeal Targets
While the SEC submitted its appeal notice just before the deadline, it followed the same approach with the Form C submission. The SEC’s appeal doesn’t challenge the court’s ruling on retail XRP sales. Instead, it focuses on Ripple’s sales on digital platforms and sales by Ripple executives, which the SEC believes should be considered securities violations. The appeal also disputes the ruling that XRP given out for non-cash consideration didn’t break the law.
The appeal will be reviewed de novo, which means the appellate court will re-examine the legal issues from the start. This could lead to a new interpretation of the securities laws involved. While Ripple still has a battle ahead, the decision in favor of XRP retail sales remains untouched for now.
Ripple’s Legal Officer Speaks Out
Ripple’s Chief Legal Officer, Stuart Alderoty, shared on social media platform X that XRP is clearly not a security. He also encouraged the community to stay informed, announcing that Ripple will submit its own Form C next week.
Uncertainty Grows – What’s Coming Next?
This latest move by the SEC adds more uncertainty to Ripple’s ongoing legal case. Some are debating whether the SEC missed its filing window, with opinions divided. Regardless, Ripple and the SEC are heading for more court battles, and the outcome could significantly affect how cryptocurrencies are regulated in the future.
Is this the beginning of a new chapter for XRP, or will the SEC have the final say?
