US SEC officially appeals the ruling in its lawsuit against Ripple regarding XRP
PANews, October 18 - According to Bitcoin.com, the U.S. Securities and Exchange Commission (SEC) has officially appealed the ruling in its lawsuit against Ripple regarding XRP. On Thursday, the regulatory agency submitted a Form C to the U.S. Court of Appeals for the Second Circuit. In this case, the SEC is the plaintiff and appellant, with Ripple Labs Inc. and its executives Brad Garlinghouse and Chris Larsen as defendants. The SEC's initial lawsuit accused Ripple and its leadership of offering and selling XRP without necessary registration, violating relevant provisions of the Securities Act of 1933. In the appeal, the SEC contested several key rulings. It questioned the court's conclusion that XRP sold by Ripple on digital asset platforms does not constitute unregistered securities, as well as the decision that Garlinghouse and Larsen's personal sales did not violate securities laws. The SEC also disputed the ruling that Ripple's non-cash XRP allocations for services provided did not violate the Securities Act of 1933.
On July 13, 2023, when the court ruled that XRP sales on digital trading platforms were not considered securities, Ripple achieved a partial victory. However, the court found that XRP sold by Ripple to institutional investors constituted unregistered securities. Additionally, the court ruled that Garlinghouse and Larsen's personal XRP sales did not constitute illegal conduct. On August 7 of this year, the court issued a final judgment ordering Ripple to pay a civil penalty of $125 million and prohibiting the company from violating the Securities Act again.
