The SEC persists and signs. As part of its fierce fight against Ripple, the SEC has just filed an appeal brief which restarts hostilities. The agency is challenging the district court’s decision that ruled in favor of Ripple on certain key points. Indeed, the US stock watchdog maintains that all sales of XRP, whether institutional or retail, violate securities laws. This new episode could well redefine the rules of the game for the entire cryptocurrency market.
- The SEC filed an appeal brief challenging the court’s ruling in favor of Ripple, claiming that all sales of XRP violate securities laws.
- This litigation could set a legal precedent with major implications for the cryptocurrency industry, potentially influencing future regulation in the United States.
The SEC strikes back: XRP is a security
In a turnaround that will not surprise many people, the Securities and Exchange Commission (SEC) filed an appeal brief challenging the district court decision which partially proved Ripple right.
As a reminder, in 2020, the SEC accused Ripple of having raised $1.3 billion via sale of XRPconsidered as a vunregistered movable property. A year later, Judge Analisa Torres ruled that some XRP sales did not violate securities laws, including those aimed at retail investors.
The SEC disagrees. In its appeal, the agency asserts that all investors, whether institutional or individual, had a “ reasonable expectation of profits » based on Ripple’s efforts to increase the value of XRP.
According to the SEC, this expectation of profit makes XRP a securityin accordance with the Howey test, a legal test used to determine whether a transaction is an investment contract.
“As a result of these representations, all XRP investors — not just institutional investors who knowingly purchased XRP from Ripple — reasonably expected to profit from Ripple’s efforts to increase the price of XRP. »
SEC Statement – Source: The Block
Ripple remains confident despite SEC’s relentlessness
For his part, Ripple doesn’t seem impressed by this new offensive. Stuart Alderoty, Ripple’s chief legal officer, called the SEC’s appeal “noise” and said the company would respond in due course. Ripple maintains that its XRP sales do not constitute investment contracts and that the district court’s initial ruling was correct.
This dispute, which has now lasted four years, has major implications for the entire cryptocurrency sector. If the SEC succeeds in having XRP recognized as a security, it could set a legal precedent affecting other tokens. Conversely, a victory for Ripple would strengthen the position of crypto companies in the face of regulation that they often consider too restrictive.
While Gary Gensler, current president of the SEC, has announced his upcoming resignation, it is interesting to note that this file could be inherited by Paul Atkins, Donald Trump’s pro-crypto candidate. Could the change in leadership at the SEC influence the outcome of this legal battle? Only the future will tell us.
The war between the SEC and Ripple is far from over. While the regulatory agency persists in considering XRP as a security, Ripple remains in its positions. This standoff could well define the future of crypto regulation in the United States, a crucial issue for a booming sector. Meanwhile, XRP is doing well and flirting with the
$3. Case to be followed very closely.
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