SEC Files Last-Minute Appeal in Ripple Case—XRP Community Outraged
The U.S. Securities and Exchange Commission (SEC) has filed a last-minute appeal in its ongoing legal battle with Ripple Labs. This move comes more than a year after U.S. District Judge Analisa Torres issued a ruling partially favoring Ripple by declaring that XRP sales to retail investors were not securities. The crypto community, particularly supporters of Ripple’s XRP, is up in arms over the latest development, as the SEC narrows its focus on specific aspects of the case.
Key Points of the Appeal
Judge Torres’ ruling in July 2023 dealt a significant blow to the SEC’s efforts to regulate cryptocurrency under existing securities laws. The court found that Ripple’s XRP sales to retail investors through digital asset platforms did not meet the legal criteria for an investment contract, clearing Ripple of any wrongdoing in this aspect.
While the SEC isn’t challenging this crucial victory for Ripple, the agency is now targeting other parts of the ruling. In its filing to the U.S. Court of Appeals for the Second Circuit, the SEC is contesting the decision on institutional sales and non-cash XRP transactions, where Ripple allegedly violated securities laws. This appeal will allow the appellate court to review these issues from scratch, a legal process known as “de novo.”
Ripple’s Cross-Appeal Targets SEC’s Claims
Ripple Labs, on the other hand, has also taken action, filing a cross-appeal to challenge certain parts of the court’s previous decision. Ripple’s appeal focuses on the ruling that XRP sales to large investors—referred to as institutional sales—constituted violations of securities laws, a decision that led to a $125 million civil penalty against the company.
Both sides are now gearing up for an intense legal showdown, with Ripple aiming to overturn the unfavorable portions of the ruling, while the SEC fights to salvage its case on institutional sales and non-cash transactions.
Impact on XRP Price and Community Reaction
As the deadline for the SEC’s appeal loomed, XRP saw a price surge, jumping 3.85% in early trading hours. This price movement took XRP from $0.5456 to $0.5662, breaking through a key resistance level at $0.5551. Investors remain optimistic that Ripple’s continued legal victories could further boost XRP’s value.
However, the SEC’s last-minute filing has sparked outrage within the crypto community. Many users have taken to social media, expressing frustration that the agency may have missed a critical deadline for filing its Form C, a mandatory document required within 14 days of filing a notice of appeal.
Ripple’s Legal Chief Confident in Appeal
Ripple’s Chief Legal Officer, Stuart Alderoty, remains confident that the SEC’s appeal will ultimately backfire. Speaking in an interview, Alderoty remarked, “I felt good about our case in the Southern District of New York. I feel even better about our case in the Second Circuit.”
Despite the ongoing legal battle, Ripple supporters are encouraged by the fact that the ruling declaring XRP’s retail sales as non-securities remains intact. Alderoty highlighted this point on social media, assuring the XRP community that the SEC is not challenging this key decision.
Conclusion
As the Ripple vs. SEC lawsuit heads into its next phase, the crypto world is watching closely. Both Ripple and the SEC are doubling down on their legal strategies, but for now, the decision that “XRP is not a security” for retail investors stands strong. This ongoing battle will continue to shape the future of cryptocurrency regulation in the United States.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. The views expressed are those of the author and not necessarily those of CryptoInsider. Readers are encouraged to conduct their own research before making any financial decisions.
