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Despite a court ruling stating that XRP is not a security, the U.S. Securities and Exchange Commission (SEC) continues to insist that it is. This stance has sparked significant speculation as Ripple, the company behind XRP, files a cross-appeal against the SEC’s claims in the ongoing legal battle.

Bitnomial Sues SEC Over XRP Classification

The SEC’s refusal to accept the court’s ruling comes amid a lawsuit filed by Bitnomial, a major crypto derivatives exchange. 

Bitnomial is taking a stand against the SEC’s classification of XRP futures as “security futures,” challenging the agency’s authority by asserting that XRP is already under the Commodity Futures Trading Commission’s (CFTC) regulation. This move highlights what many see as regulatory overreach by the SEC.

The agency’s stance raises red flags, with crypto enthusiasts questioning its motives in prolonging this high-profile case. Ripple’s recent cross-appeal is already moving forward, with the paperwork completed and the appeal fee settled at the U.S. Court of Appeals—signaling yet another intense round in the SEC vs. Ripple showdown.

Legal Experts Criticize SEC’s Claims

Meanwhile, Bill Morgan, a lawyer representing pro-XRP interests, criticized the SEC for using its earlier briefs from the Ripple case to justify its claims. He pointed out that the court had previously ruled that not all sales of XRP are considered securities, which the SEC seems to ignore. 

You have to read paragraph 34 to 36 of the complaint of Bitnominal against the SEC or you won’t believe me. SEC supported its assertion that XRP is a security by giving Bitnominal copies of its summary judgement briefs in SEC v Ripple but did not note that the court rejected the… https://t.co/pzJWaIdvVR pic.twitter.com/gIaD1j95qQ

— bill morgan (@Belisarius2020) October 11, 2024

Many in the crypto community see the SEC’s actions as an attempt to control the digital asset space despite mounting opposition.

Amid this turmoil, Ripple’s cross-appeal reflects its commitment to contesting the SEC’s ongoing pressure. In July 2023, Judge Torres ruled that XRP sold on secondary markets does not qualify as a security, a decision that was widely celebrated in the crypto world.

XRP Price Soars

In response to these developments, XRP’s price saw an increase of 0.7%, reaching $0.54, with trading volume surging by 55% to $1.31 billion. This indicates growing confidence among market participants, especially with XRP futures open interest climbing 4% to $713.26 million.