Ripple remains steadfast as the SEC opts not to appeal the ruling that XRP is not a security, instead focusing on exchange sales and executive actions.
Ripple has emerged resolute following the U.S. Securities and Exchange Commission's (SEC) decision not to appeal a significant ruling that determined XRP is not a security. Instead, the SEC is focusing its efforts on challenging specific aspects of the case, particularly regarding exchange sales and the actions of Ripple executives.
In a landmark decision last year, Judge Analisa Torres ruled in favor of Ripple, stating that the company's sales of XRP to retail investors on digital asset exchanges did not violate U.S. securities laws. However, the court found that sales to institutional investors did breach these regulations. This ruling has been pivotal in shaping the regulatory landscape for cryptocurrencies.
On October 17, the SEC submitted a Civil Appeal Pre-argument statement to the U.S. Court of Appeals for the Second Circuit, outlining its intent to contest certain elements of the previous ruling. Notably, the SEC is not disputing the court's decision regarding retail sales but is focusing on:
Ripple's Chief Legal Officer, Stuart Alderoty, expressed confidence in the ruling, emphasizing that the determination that XRP is not a security remains unchallenged. He stated, "No surprises here — once again it’s been made clear. The Court’s ruling that 'XRP is not a security' is NOT being appealed. That decision stands as the law of the land."
Ripple is also preparing to submit its cross-appeal next week, indicating that the legal battle is far from over.
The SEC's decision to appeal has sparked significant discussion within the cryptocurrency community. Many observers are speculating about the implications of the SEC's focus on exchange sales and the potential impact on Ripple's operations and the broader crypto market. The timing of the SEC's filing, just weeks after it signaled its intent to challenge the ruling, has also raised eyebrows.
As the legal tussle between Ripple and the SEC continues, the outcome of the appeal could have far-reaching implications for the cryptocurrency industry. With Ripple standing firm on the ruling that XRP is not a security, the next steps in this ongoing saga will be closely watched by investors, regulators, and industry stakeholders alike.
