The SEC Signals Intention to Overturn Ruling on XRP
The U.S Securities and Exchange Commission (SEC) has filed an interlocutory brief indicating its plan to appeal the ruling that deemed XRP not a security. Here are the key points:
– The SEC has stated its intention to appeal part of the judge’s decision regarding Ripple’s “programmatic” sales of XRP.
– Judge Analisa Torres ruled that XRP bought by retail investors on exchanges did not qualify as securities, but direct sales to institutional investors did.
– The SEC referenced a recent case against Terraform Labs and its founder, Do Kwon, to challenge Judge Torres’s reasoning.
– XRP-related exchange-traded products (ETPs) have experienced significant growth, with a 57% increase in assets under management year-to-date.
– Despite the positive market performance, there is concern that a successful SEC appeal could lead to a price crash for XRP.
Hot Take: The SEC’s decision to appeal the ruling on XRP as a security could have far-reaching implications for the cryptocurrency and its investors. It remains to be seen how this legal battle will unfold and its impact on the broader crypto market.
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