🌋 SEC vs Ripple: The Next Chapter
posted 18 Oct 2024
The U.S. Securities and Exchange Commission (SEC) has filed an appeal in its case against Ripple (XRP), challenging a district court decision made a year ago. Back then, the crypto firm secured a victory as the judge ruled that XRP sales to retail investors did not breach securities laws.
In other words, such sales were not classified as investment contracts, which was the central point the SEC had been trying to argue. However, in its current appeal, the Commission is now focusing on programmatic XRP sales on exchanges and the actions of Ripple Labs' leadership.
Interestingly, the SEC is not disputing the previously imposed $125 million fine. The upcoming hearing will begin with a "clean slate," meaning the court will not refer to past rulings or interpretations, offering a brand-new perspective on the matter.
All of this seems like SEC's 'desperation,' as they appear to be chasing any semblance of success in this case. Chances are, they’ll fall shortcommented GN Crypto analyst Anton Kryshtal.
Ripple’s legal team shares this sentiment. They believe the appeal will ultimately favor the crypto sector, giving startups more leverage against the SEC. The legal team has already begun preparing for the next court battle.
However, even the appeal filing didn’t happen without drama. The regulator was required to submit its documents within 14 days of the official notice (by October 16 at the latest), yet the court records show a filing date of October 17. The SEC has not yet responded to this discrepancy.
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