XRP News: SEC Appeals Ripple Ruling Over XRP Classification

The U.S. Securities and Exchange Commission (SEC) has taken a significant step in its ongoing legal battle with Ripple Labs by filing an opening brief to appeal a federal court judge's ruling on XRP. The SEC is challenging the July 2023 decision that XRP sales to retail investors do not constitute unregistered securities offerings. This development could have far-reaching implications for the classification of XRP and the broader cryptocurrency market.

SEC Appeals Ripple Ruling Over XRP Classification

The U.S. Securities and Exchange Commission (SEC) has filed an opening brief in its appeal against Ripple Labs, challenging a federal court judge's ruling that XRP sales to retail investors do not constitute unregistered securities offerings. The SEC argues that the New York District Court erred in its July 2023 decision and seeks to have XRP sales to retail investors classified as unregistered securities. Additionally, the SEC contends that XRP used for employee compensation and business deals should also be classified as securities. Ripple's chief legal officer has criticized the SEC's appeal, emphasizing the ongoing legal battle over XRP's regulatory status.

Ripple’s Chief Legal Officer Predicts SEC Lawsuit Dismissal

Stuart Alderoty, Ripple’s Chief Legal Officer, has expressed confidence that the U.S. SEC’s lawsuit against Ripple will likely be abandoned by the next administration. He criticized the lawsuit as politically driven and a rehash of failed arguments. Alderoty also highlighted the upcoming era of pro-innovation regulation and congratulated Coinbase and attorney Paul Grewal for their recent legal victory against the SEC. U.S. attorney Hogan noted that the SEC is only appealing the ruling regarding XRP sales to retail investors, not the harm to investors, expressing surprise at the SEC's lack of reasonable arguments.

XRP Holds Strong Above $3 Despite SEC Appeal Against Ripple

XRP continues to trade above $3, showing a significant bullish trend. The SEC has filed an appeal to overturn a previous court ruling that classified XRP sales to retail investors as not being unregistered securities. The SEC argues that Ripple's promotional activities led investors to expect profits, thus classifying XRP as an investment contract under the Howey Test. This legal battle began in December 2020 when the SEC sued Ripple for allegedly selling unregistered securities.

Ripple CEO Blasts SEC Appeal as ‘Insanity’ – What’s Next for XRP?

Ripple CEO Brad Garlinghouse has criticized the SEC's recent appeal in the ongoing legal battle over XRP, calling it 'insanity' and suggesting that the SEC is repeating failed strategies. The SEC is challenging aspects of the court's earlier ruling on XRP sales, which has led to increased attention on XRP's market performance. Analysts and traders are closely watching the developments, as the outcome could have significant implications for XRP and the broader cryptocurrency markets.

Ripple vs SEC: What This Appeal Means for XRP and Crypto Markets

The SEC's appeal in the Ripple case is seen as a critical moment for XRP and the cryptocurrency markets. The SEC is attempting to alter parts of the court's previous decision regarding XRP sales on exchanges. This move has been met with skepticism by Ripple's CEO, Brad Garlinghouse, who likened the SEC's actions to the definition of insanity—doing the same thing repeatedly and expecting different results. The situation is being closely monitored by experts and traders, as it could influence regulatory approaches to cryptocurrencies in the future.