The post XRP – SEC update: Agency files appeal after Ripple’s ‘waste of taxpayer money’ criticism appeared on BitcoinEthereumNews.com.

SEC reignited legal tensions with Ripple Labs over XRP’s classification XRP surges by 9.21%, reflecting resilience despite ongoing regulatory scrutiny by the SEC The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a new turn, after the SEC formally appealed a pivotal ruling from July 2023. The initial decision by Judge Analisa Torres differentiated XRP sales, determining that transactions on exchanges were not securities. And yet, sales to institutional investors were classified as such. Despite Ripple being ordered to pay a $125 million civil penalty for institutional XRP sales, the SEC is now contesting the court’s position on secondary market transactions. By invoking the Howey Test, the agency argues that Ripple’s promotional activities fostered profit expectations among investors. According to the SEC, this positions XRP as an investment contract. What’s the reason behind the appeal? The SEC argued that “investor expectations hinge on the issuer’s actions, not the identity of the seller,” emphasizing that Ripple’s distribution of XRP, even in non-cash transactions like employee compensation and business incentives, aligns with the “investment of money” requirement under the Howey framework. The timing here is interesting. Especially since changes in the SEC’s leadership are expected soon. And yet, the regulator has remained firm, refusing to delay its pursuit of this case, as confirmed by Ripple’s Chief Legal Officer Stuart Alderoty. Ripple Labs criticizes SEC As expected, Ripple’s leadership has not held back in criticizing the SEC’s decision to pursue an appeal against its recent legal setback. Just recently, Alderoty labeled the move as a “waste of taxpayer money,” reflecting the firm’s growing frustration with the regulator’s relentless enforcement actions. He said,  “On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening…

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Filed under: News - @ January 16, 2025 1:25 pm