The post SEC targets Ripple’s XRP sales on exchanges, distributions of XRP to employees in new filing appeared on BitcoinEthereumNews.com.

Key Takeaways The SEC’s appeal does not contest XRP’s classification as a non-security but challenges other aspects of the ruling. The appellate court will conduct a de novo review of the SEC’s claims against Ripple’s XRP transactions. The SEC is appealing the July 2023 ruling that determined Ripple’s XRP sales on digital asset platforms, executives’ sales, and other distributions of XRP did not constitute investment contracts, according to a new filing shared by attorney James Filan. “Whether the district court erroneously granted partial summary judgment in favor of defendants with respect to Ripple’s offers and sales of XRP on digital asset trading platforms (and Garlinghouse’s and Larsen’s aiding and abetting of those offers and sales), Garlinghouse’s and Larsen’s personal offers and sales of XRP, and Ripple’s distributions of XRP in exchange for consideration other than cash. These issues are to be reviewed de novo,” the filing wrote. In July 2023, Judge Analisa Torres of the US District Court for the Southern District of New York ruled that Ripple’s institutional sales of XRP were unregistered securities offerings. However, the judge also determined that Ripple’s sales of XRP on digital asset trading platforms and the sales of XRP by Ripple executives Brad Garlinghouse and Chris Larsen did not constitute securities transactions. The court also ruled that Ripple’s distributions of XRP for employee compensation and its Xpring initiative were exempt from securities classification. Following the ruling, Ripple was ordered to pay a $125 million penalty for unregistered securities offerings through institutional XRP sales. This was lower than the SEC’s initial request for nearly $2 billion and was expected to bring the long-running legal dispute to a close. Now the SEC has decided to appeal part of the ruling that favored Ripple, which potentially extends the case until early 2026. If the SEC prevails,…

---

Filed under: News - @ October 18, 2024 4:19 am