The SEC Requests Permission to Appeal Ruling on Ripple’s XRP Token
The U.S. Securities and Exchange Commission (SEC) has filed a motion seeking permission to appeal a recent federal court ruling that stated secondary sales of Ripple’s XRP token are not securities. The agency argues that there are still significant differences of opinion on how securities laws apply to cryptocurrencies, citing a similar case involving Terraform Labs where the judge ruled differently.
Key Points:
- The SEC contests two of Judge Analisa Torres’s rulings: one that “Programmatic Sales” of XRP did not satisfy Howey, and another that “Other Distributions” also failed to do so.
- Another court in the district disagreed with the Order’s ruling on Programmatic Sales.
- Terraform Labs unsuccessfully attempted to dismiss a similar SEC case against them, arguing a distinction between “institutional” and “secondary” market sales.
- The SEC references prior cases, including their charges against Telegram and LBRY, to support their argument that transactions through intermediaries can violate securities laws.
- Lawyers have differing opinions, with one supporting the SEC’s appeal and another calling their position ridiculous.
Hot Take:
The SEC’s request to appeal the ruling on Ripple’s XRP token indicates the agency’s determination to establish clear guidelines on how securities laws apply to cryptocurrencies. The outcome of this appeal could have significant implications for the crypto industry as a whole, as it may shape future regulatory decisions and enforcement actions. The conflicting opinions among legal experts highlight the complexity of this issue and the need for further clarification from the courts.
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