Ripple (XRP) Faces Potential SEC Appeal, Industry Questions Regulatory Approach

Marc Fagel indicated that the SEC could contemplate appealing the decision regarding XRP secondary sales. While the Ripple case determined that primary sales of XRP are not securities, secondary sales were not included in that decision.

The United States Securities and Exchange Commission (SEC) might contemplate appealing the decision made in the Ripple case regarding XRP secondary sales, according to Marc Fagel.

While the court decided that XRP primary sales are not securities, the ruling did not cover secondary sales. According to Fagel, the SEC may attempt to fill this gap by going after secondary sales.

“The Ripple decision does not bar another entity from suing if it sells XRP as a security,” Fagel stated.

This statement indicates that the SEC will continue to investigate whether XRP is a security.

Bitnomial’s XRP futures contracts were deemed securities futures contracts by the Commodity Futures Trading Commission (CFTC), a decision that has sparked legal challenges and varying reactions within the industry.

Attorney Bill Morgan questioned why these contracts were classified as such, highlighting the lack of a similar approach by the SEC to Ethereum (ETH) futures.

“This has created a regulatory pincer movement on the crypto industry that is raising concerns,” Morgan said.

In its cross-appeal, Ripple aims to expand the initial ruling beyond the finding that XRP is not a security, addressing the SEC’s broader claims regarding XRP sales. The Bitnomial case, on the other hand, focuses on the jurisdiction of XRP futures, arguing that the CFTC should have authority over the matter.

“The Bitnomial case is about whether XRP futures are a commodity futures contract or a securities futures contract,” Bill explained.

These discussions will be critical in determining XRP’s future legal status.

The above is the detailed content of Ripple (XRP) Faces Potential SEC Appeal, Industry Questions Regulatory Approach. For more information, please follow other related articles on the PHP Chinese website!