The United States Securities and Exchange Commission (SEC) has filed a notice of appeal against the recent court ruling in favor of Ripple Labs. The SEC is seeking to overturn the decision that established secondary sales of XRP as non-securities transactions.
In a landmark decision, Judge Analisa Torres ruled that secondary sales of XRP did not constitute securities sales under US law. This was a significant victory for Ripple and the broader cryptocurrency industry.
While the secondary sales were deemed non-securities transactions, the court found that early sales by Ripple’s founders to institutional investors did qualify as securities sales.
The SEC is challenging the court’s ruling on secondary sales, arguing that they should be considered securities transactions.
As the SEC appeals the Ripple ruling, the agency has also experienced a leadership change. Gubir Grewal, the SEC’s chief enforcement officer, has announced his resignation. Grewal’s tenure was marked by aggressive enforcement actions against the cryptocurrency industry.
Despite the ongoing legal battle, there is growing interest in XRP among institutional investors. Bitwise, a digital asset management firm, has filed for an XRP ETF trust in Delaware. While SEC approval may be delayed due to the ongoing legal proceedings, the filing indicates a growing appetite for XRP products.
The SEC’s appeal of the Ripple ruling highlights the ongoing legal uncertainty surrounding cryptocurrencies in the United States. The outcome of the appeal could have significant implications for the broader cryptocurrency market. As the industry continues to evolve, it is essential for regulators and industry participants to work together to establish clear and consistent regulatory frameworks.
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Author: Sb
