The XRP Army Can't Seem to Catch a Break, as the US SEC Filed an Appeal on Wednesday
- Patricia ArquetteOriginal
- 2024-10-04 15:56:15264browse
The appeal challenges a 2023 decision by Judge Analisa Torres (as expected), which ruled that secondary sales of Ripple's XRP token did not qualify
The US Securities and Exchange Commission (SEC) has filed an appeal on Wednesday to overturn a court ruling in its lawsuit against Ripple.
The appeal challenges a 2023 decision by Judge Analisa Torres, which ruled that secondary sales of Ripple’s XRP token did not qualify as securities transactions. However, the institutional sale of XRP constituted unregistered securities offerings, leading to a fine of over US$125M (AU$182M) for Ripple, way less than the US$1.9B (AU$2.7B) the SEC requested originally.
The SEC’s decision to appeal the court's ruling on Ripple's programmatic sales of XRP has been met with criticism from some legal professionals. Attorney Jeremy Hogan, who has been closely following the case, called the move a “big mistake.”
According to Hogan, if the SEC wins the appeal, it may only result in a larger financial settlement from Ripple without offering any meaningful protection for investors. He suggests that Ripple will raise its “Blue Sky” law issue in the appeal, and if successful, it could significantly hamper the SEC’s ability to regulate the entire crypto space.
Blue Sky laws are state regulations designed to protect investors from fraud and ensure that companies fully disclose their offerings when selling securities. If Ripple manages to leverage this strategy effectively, it could present a major setback for the SEC's regulatory efforts under the leadership of Chair Gary Gensler.
Interestingly, the timing of the SEC's appeal coincides with the departure of its Chief Enforcement Officer, Gurbir Grewal, who was heavily involved in the agency's case against Ripple. Additionally, SWIFT announced live trials of digital asset transactions one day after the SEC filed its appeal.
Crypto entrepreneur Yassin Mobarak highlighted the broader impact of the SEC lawsuit on the crypto industry, particularly in delaying the adoption of digital assets.
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