The SEC Officially Appeals Its Case Against Ripple Following a Historical Ruling on Aug. 7

Ripple's CLO, Stuart Alderoty, expressed his disappointment with the SEC's decision. He called the lawsuit “irrational” and “misguided” from the start

The SEC has officially filed an appeal in its case against Ripple following a historic ruling on Aug. 7, in which Ripple was ordered to pay a $125 million civil penalty, despite the regulator initially seeking $2 billion. The SEC is now arguing that the district court’s decision goes against long-standing Supreme Court precedents and established securities laws.

Ripple’s Chief Legal Officer (CLO), Stuart Alderoty, expressed disappointment with the SEC’s decision. He stated that the lawsuit was “irrational” and “misguided” from the outset, highlighting that the court had already rejected the SEC’s claim that Ripple acted recklessly and that there were no allegations of fraud, victims, or losses.

In response to Alderoty’s comments, Charles Hoskinson, the founder of Cardano, ironically suggested that the ongoing Ripple case could potentially replace the Howey Test, the legal standard used to determine whether certain transactions qualify as investment contracts under U.S. securities law.

Hoskinson’s statement is somewhat tongue-in-cheek, as the Howey Test was established in 1946, long before the founders of XRP and Ripple were even involved in the project. However, given the Ripple case’s importance to the cryptocurrency market, Hoskinson’s suggestion may not be entirely far-fetched.

Many industry observers believe that this case is crucial for obtaining clarity on the regulations governing digital assets, and its outcome could set new standards in securities law regarding crypto.

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