Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.
The U.S. Securities and Exchange Commission (SEC) filed an appeal in its ongoing lawsuit against Ripple Labs on Oct. 2, 2024, aiming to overturn a ruling by Judge Analisa Torres. This ruling, issued in 2023, declared that secondary sales of Ripple’s XRP do not qualify as securities transactions.
Judge Torres concluded that XRP itself does not meet the criteria set out by the SEC’s Howey Test, which determines whether a financial asset is an investment contract.
As a result, the court ruled that XRP’s secondary sales were not unregistered securities offerings. However, the judge also ruled that early sales from Ripple’s founders to institutional investors did constitute securities sales due to the way they were conducted.
The SEC’s appeal seeks to challenge these conclusions, aiming to redefine XRP’s legal status. Ripple Labs and the cryptocurrency industry celebrated the initial ruling as a significant victory for digital assets.
Simultaneously, SEC enforcement chief Gubir Grewal announced his resignation, and Bitwise filed for an XRP ETF in Delaware, although SEC approval could face delays amid the ongoing legal proceedings.