• The U.S. Securities and Exchange Commission has filed a formal appeal of Ripple's litigation challenging a July 2023 order that dismissed certain claims against the company.

The appeal, filed late Wednesday, concerns whether Ripple's sales of #XRP to retail investors constitute an unregistered securities transaction under federal law.

the SEC cites the Howey test, arguing that Ripple's promotional activities create an expectation of profit for investors and make XRP an investment contract.

#Ripple and the SEC did not immediately respond to Decrypt's request for comment.

After the district court ruled partially in favor of Ripple in July 2023, the regulator had already filed an appeal in mid-October 2024, but an opening brief released Wednesday formalizes the appeals process in which the SEC presents arguments to challenge the previous ruling.

January 20 The expected change in party leadership at the SEC has not changed the agency's plans for enforcement action On January 14, Ripple lawyer Stuart Alderoti announced that the SEC had postponed filing an appeal of the favorable verdict. Despite the SEC's obstructionism, investors in Ripple-linked XRP are not happy: the price of XRP has been rising unstoppably lately, reaching $BTC the SEC said that sales on #cryptocurrency exchanges do not meet this standard.

The brief also challenges the district court's conclusion that XRP distributed in non-cash transactions, such as employee compensation and business incentives, are not subject to securities laws.

the SEC argues that labor and services received in exchange for XRP meet the investment of money test established under Howey.

Ripple's lawyers have consistently rejected the SEC's arguments, arguing that XRP is a #digital currency, not a security.

On Wednesday, Chief Legal Officer Stuart Alderoti called the SEC's latest filing a rehash of failed claims and predicted the case would lose momentum under the Trump administration.

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