The post Ripple News: SEC Appeals XRP Case Near Deadline! appeared first on Coinpedia Fintech News
The US Securities and Exchange Commission filed a Form C with a detailed appeal on October 17. Social media was abuzz with speculation as to whether the SEC had missed the deadline. We revealed in yesterdayâs newsletter that this was not the case. Now that the appeal has officially been filed, letâs find out what it means for the Ripple Vs Sec case.
Ripple's Victory May Be Short-Lived
Judge Analisa Torres ruled in July 2023 that Rippleâs sale of XRP tokens to retail investors was not a security. However, the institutional sales did count as securities. On August 7 of this year, upholding her previous decision, she imposed a $125 million civil penalty on Ripple Labs. The SEC wanted the court to treat all XRP sales as securities and fine the crypto company $2 billion. This did not go as planned, and Judge Torres denied it. This was a major setback for the SEC.
SEC's Last Minute Action
The Commission filed its notice of appeal very close to the previous deadline, and now it has done so with the filing of its Form-C. Its appeal does not question retail sales of XRP. Instead, it focuses on Rippleâs incentives and sales on digital platforms and the personal sales of Ripple executives. According to the SEC, these areas should still be considered securities violations. The appeal also challenges the courtâs decision that XRP being offered for non-cash consideration did not violate any laws.
Interestingly, the appeal will be heard from scratch, meaning the appeals court will review the legal issues from scratch. This allows for a new interpretation of the securities law in question. Rippleâs fight is far from over, but the retail victory remains intact, at least for now.
Response from Ripple
Stuart Alderoty, Chief Legal Officer at Ripple, wrote on social media platform X that it is once again clear that XRP is not a security. He also asked the community to continue to monitor the case as Ripple will file their Form C next week.
No surprises here â once again, this has been made clear. The Court's ruling that "XRP is not a security" is NOT subject to appeal. That decision remains the law of the land. Keep an eye out for Ripple's Form C filing next week. https://t.co/m9molUGSBv
â Stuart Alderoty (@s_alderoty) October 18, 2024
What to expect
This latest move by the SEC adds to the uncertainty of Rippleâs journey. The crypto community is watching closely, especially since there has been confusion over the SECâs filing date. Did the SEC miss the filing deadline? Some believe they did, but others are unsure. Either way, Ripple and the SEC are set to face more legal battles, and the outcome could shape how cryptocurrencies are regulated in the future.
