The post Possibilities for Ripple’s XRP: SEC Appeals Parts of Key Ruling While Retail Sales Remain Uncontested appeared on BitcoinEthereumNews.com.

The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has entered a new phase with the SEC’s recent appeal. Judge Analisa Torres’ ruling, which had previously favored Ripple, marked a significant moment in the ongoing discourse surrounding cryptocurrency regulations. Ripple’s Chief Legal Officer, Stuart Alderoty, reaffirmed the ruling that XRP is not classified as a security, indicating that this aspect of the case remains unchallenged. The SEC’s latest appeal against Ripple Labs raises critical questions about cryptocurrency regulation and the classification of digital assets in the United States. The SEC’s Recent Appeal Against Ripple Labs The U.S. Securities and Exchange Commission has formally lodged an appeal regarding parts of the summary judgment rendered by U.S. District Judge Analisa Torres. This decision, delivered in July 2023, was pivotal in affirming that Ripple’s sales of XRP to retail investors via digital asset platforms did not constitute violations of U.S. securities laws. This ruling dealt a considerable setback to the SEC’s attempts to exert traditional securities regulations over cryptocurrency transactions. Key Aspects of the Ruling Under Appeal The SEC’s appeal, submitted to the U.S. Court of Appeals for the Second Circuit, specifically targets the court’s determination that Ripple’s activities regarding XRP on trading platforms and the personal sales made by its executives were devoid of securities violations. Furthermore, the SEC is also contesting the ruling that deemed Ripple’s non-cash consideration arrangements for XRP distributions as non-breach of securities laws. Previously, Ripple faced penalties for its institutional sales, which were found to be in violation of securities laws, leading to a hefty $125 million civil penalty mandated by the Southern District Court of New York. Implications of the Appeal This appeal allows the appellate court to re-evaluate the lower court’s application of securities law in relation to the sales…

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Filed under: News - @ October 18, 2024 2:28 am