The U.S. Securities and Exchange Commission (SEC) is making headlines once again as they file a notice of appeal against a landmark ruling from 2023. This ruling stated that the sales of the popular crypto asset XRP only qualify as securities when sold to institutional investors. The decision to appeal has sparked controversy and drawn criticism from various industry experts.
Stuart Alderoty, the chief legal counsel of Ripple Labs, took to social media to express his disappointment with the SEC’s latest move. He called it a continuation of the regulator’s warfare against the digital assets industry. Alderoty highlighted the fact that the court had already rejected the SEC’s claims of recklessness on Ripple’s part, as well as the absence of any allegations of fraud or victims. He criticized the SEC for engaging in what he called “litigation warfare” and stated that Ripple Labs is considering filing a cross appeal to defend their position.
The SEC officially filed the notice to appeal on October 2nd, as revealed by court documents shared by crypto legal expert James K. Filan. This comes after Judge Analisa Torres, who previously ruled that retail sales of XRP do not qualify as securities, rejected the SEC’s initial motion to appeal in October 2023. Torres questioned the agency’s ability to demonstrate how the appeal would benefit the ultimate resolution of the case.
The legal battle between the SEC and Ripple Labs began in December 2020 when the regulatory agency sued the firm for selling XRP as an unregistered security. XRP is a digital asset used by Ripple Labs to power its payments platform. At the time of writing, XRP is trading at $0.517, marking an 11.94% decrease in value over the last 24 hours.
As the appeal process unfolds, the crypto industry is closely watching the developments. The outcome of this case could have far-reaching implications for how digital assets are regulated in the future. Stay tuned for updates on this ongoing legal saga.
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[Source: The Daily Hodl]