The United States Securities and Exchange Commission (SEC) continues to experience new developments in the case regarding whether the XRP token should be considered a security or not. Following Ripple Labs’ partial victory, the SEC moved to appeal Judge Torres’ decision one month later, today, in order to take the case to the appellate court.
Details of the Case
The SEC had filed a lawsuit against Ripple Labs, arguing that XRP tokens should be considered securities and thus the sale of tokens should be deemed an unregistered securities offering. However, in July, Judge Analisa Torres ruled that XRP tokens were not securities in and of themselves, granting XRP a partial victory.
SEC’s Appeal Application
Exactly one month later, the SEC moved to appeal Judge Torres’ decision and take the case to the appellate court. The Commission argued that the decision needs to be reviewed by the appellate court and a more comprehensive evaluation should be conducted to determine whether XRP tokens should be classified as securities.
The SEC’s appeal application marks a significant step that could determine the future of the Ripple Labs case. Judge Torres also noted that there are additional court cases that could be affected by the appeal outcome and thus a stay in the proceedings was requested. Additionally, the SEC emphasized the importance of the legal disagreements regarding the status of XRP tokens as securities.
“These two issues, as reflected by an already developed intracircuit split, involve significant rationales for differing views on the legal issues in question.”SEC
The SEC’s appeal in the Ripple Labs case further amplifies the legal uncertainty surrounding the status of XRP tokens as securities. The outcome of the appeal process holds substantial significance for the cryptocurrency sector and regulations. These developments could potentially influence future cryptocurrency regulations and approaches to similar cases.