According to Cointelegraph, the United States Securities and Exchange Commission (SEC) has filed a notice of appeal in the Ripple lawsuit on October 2, seeking to overturn Judge Analisa Torres’s earlier ruling.
Legal experts had anticipated the regulatory agency’s appeal of Judge Torres’s 2023 verdict, which determined that secondary sales of Ripple’s XRP (XRP) did not constitute securities sales. Judge Torres ruled that XRP was not a security in itself because the digital assets did not meet all the conditions listed in the SEC’s Howey test to classify a financial asset as an investment contract.
As a result, secondary sales cannot be labeled as unregistered securities sales, according to Torres. However, she also clarified that early sales from the Ripple founders to institutional investors did constitute securities sales due to the manner in which the sales were conducted. At the time, the ruling was considered a significant victory for Ripple Labs and the broader cryptocurrency industry.
This is a developing story, and further information will be added as it becomes available.
