SEC Appeals XRP’s Security Status in Ripple Case
The United States Securities and Exchange Commission (SEC) has filed an interlocutory appeal on XRP’s security status in the SEC vs Ripple case. This comes after a federal judge ruled that XRP sales conducted through exchanges did not breach securities law. The SEC has been granted permission to file the appeal, citing potential ramifications of the ruling on ongoing cases.
Key Points:
– Judge Torres Analisa allowed the SEC to request an interlocutory appeal after her ruling.
– The SEC argues that resolving the two rulings through immediate appellate review will address all violations in a single proceeding.
– Ripple Labs argues that the SEC lacks evidence to support its claim and sees the appeal as a strategic pivot by the regulator.
– Ripple has until September 1 to respond to the SEC’s filing motion.
Questionable SEC Decision: XRP’s Security Status
Jeremy Hogan from the Hogan & Hogan law firm criticized the SEC’s intent to appeal the ruling on XRP’s non-security status. He pointed out that the appeal is not about whether XRP itself is a security but rather about losses on programmatic and individual sales. Hogan emphasized that challenging programmatic sales and XRP’s non-security status are separate issues.
Key Points:
– The SEC’s appeal departs from previous cases where non-cash contributions were considered investments.
– SEC Chairman Gary Gensler expressed disappointment with the judge’s remarks about retail investors.
– Gensler believes crypto is prone to fraud and will continue enforcing regulations on cryptocurrency companies.
District Judge Jed S. Rakoff also disagreed with Judge Torres’s ruling, stating that the Howey test does not differentiate between institutional and retail buyers.
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