#SEC files appeal in #Ripple lawsuit!
The Securities and Exchange Commission first filed the lawsuit against Ripple Labs and both its founders in December 2020.
The United States đșđž Securities and Exchange Commission (SEC) filed a notice of appeal in the Ripple lawsuit on Oct. 2, 2024, seeking to overturn an earlier ruling from Judge Analisa Torres.
Legal experts anticipated the regulatory agency's appeal of the 2023 verdict set by Judge Torres, which established that secondary sales of Ripple's $XRP did not constitute securities sales.
Torres ruled that #XRP was not a security, in and of itself, due to the digital assets' failure to satisfy all the conditions listed in the SEC's Howey test to classify a financial asset as an investment contract.
Because of this, secondary sales cannot be labeled as unregistered securities sales, Torres ruled. However, Torres also explained 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 hailed as a major victory for Ripple Labs and the broader cryptocurrency industry.
