The SEC Considers Appealing Ripple Ruling, Cites Arbitrary Differentiation
The U.S. Securities and Exchange Commission (SEC) is considering appealing the ruling in its lawsuit against Ripple Labs. The SEC believes that the ruling goes against existing securities laws and principles, particularly the Howey Test. The regulator has confirmed that it is exploring various avenues for further review and will not give up on the case easily.
Key points:
- The direct sale of XRP, Ripple’s native token, to institutional investors was deemed a violation of SEC rules, while retail investors were allowed to buy the token on exchanges.
- The SEC disagrees with the judge’s differentiation between institutional and individual investor anticipations, considering it arbitrary.
- Terraform Labs and its founder, Do Kwon, have referenced the Ripple case in their motion to dismiss the SEC’s case against them, but the SEC argues that the Ripple ruling supports its claims.
- SEC Chair Gary Gensler expressed disappointment with the classification disparity for institutional and retail investors and stated that the Commission is considering its next steps.
- The potential appeal by the SEC has significant implications for the status and classification of digital assets in the United States.
Hot Take: The SEC’s potential appeal highlights the agency’s determination and willingness to fight for its position. It also signifies the importance of the Ripple ruling in shaping lawsuits against other crypto entities. The crypto community eagerly awaits updates on the SEC’s next actions and the potential impact on the broader cryptocurrency landscape.
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