SEC Appeals Decision In Landmark Ripple Case
On Wednesday, the SEC filed (PDF) to appeal a 2023 court ruling that determined XRP is not considered a security when sold to retail investors on exchanges. The announcement sent the price of XRP tumbling more than 8%. “XRP, which was created by the founders of Ripple, is the native token of the open source XRP Ledger, which Ripple uses in its cross-border payments business,” notes CNBC. “It is the fifth-largest coin by market cap, excluding stablecoins Tether (USDT) and USD Coin (USDC).” CNBC reports: Ripple, the largest holder of XRP coins, scored a partial victory last summer after a three-year battle with the SEC. U.S. District Judge Analisa Torres handed down the decision, which was hailed as a landmark win for the crypto industry. Still, while XRP isn’t considered a security when sold to retail investors on exchanges, it is considered an unregistered security offering if sold to institutional investors.
Ripple declined to comment but referred to Wednesday evening posts on X by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Alderoty said the company is evaluating whether to file a cross appeal, and called the SEC’s decision to appeal “disappointing, but not surprising.” The SEC, under Chair Gary Gensler, has become notorious for its refusal to provide clear guidance for crypto businesses, instead opting to regulate by enforcement actions. “XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse said on X.
Read more of this story at Slashdot.
On Wednesday, the SEC filed (PDF) to appeal a 2023 court ruling that determined XRP is not considered a security when sold to retail investors on exchanges. The announcement sent the price of XRP tumbling more than 8%. “XRP, which was created by the founders of Ripple, is the native token of the open source XRP Ledger, which Ripple uses in its cross-border payments business,” notes CNBC. “It is the fifth-largest coin by market cap, excluding stablecoins Tether (USDT) and USD Coin (USDC).” CNBC reports: Ripple, the largest holder of XRP coins, scored a partial victory last summer after a three-year battle with the SEC. U.S. District Judge Analisa Torres handed down the decision, which was hailed as a landmark win for the crypto industry. Still, while XRP isn’t considered a security when sold to retail investors on exchanges, it is considered an unregistered security offering if sold to institutional investors.
Ripple declined to comment but referred to Wednesday evening posts on X by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Alderoty said the company is evaluating whether to file a cross appeal, and called the SEC’s decision to appeal “disappointing, but not surprising.” The SEC, under Chair Gary Gensler, has become notorious for its refusal to provide clear guidance for crypto businesses, instead opting to regulate by enforcement actions. “XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse said on X.
Read more of this story at Slashdot.