In the case of Ripple $XRP v. SEC, the decision of Judge A remains key. Torres from July 2023. It found that sales of XRP on exchanges are not investment contracts under the Gowey test. This means that Ripple has managed to avoid classifying the token as a security in the context of retail sales. However, the court recognized institutional sales of XRP as a violation, obliging Ripple to pay a fine of $125 million.
On the SEC's appeal, the court denied further delays, setting a January 2025 filing deadline. If the SEC fails to do so, the appeal will be automatically dismissed.
Importantly, Ripple also filed a counter-appeal, specifically regarding the penalty for institutional sales and other details that could affect the formation of legal norms for cryptocurrencies. The company claims that XRP transactions did not involve obligations or guarantees of profit to buyers, which is contrary to the definition of an investment contract.
In addition, following the resignation of SEC Chairman Gary Gensler, the crypto community is cautiously optimistic about a change in the regulator's approach to crypto-assets.
This case remains important not only for Ripple, but also for the entire market, because its outcome could become a precedent for the regulation of cryptocurrencies.
