- SEC seeks an appeal against Ripple, stirring the XRP community.
- The legal battle hinges on Ripple’s sales and distributions of XRP.
- Ripple’s Chief Legal Officer clarifies SEC’s preliminary appeal intent.
In a recent development, the US Securities and Exchange Commission (SEC) has outlined its reasons for pursuing an appeal against Ripple Labs Inc. This decision has notably stirred the XRP community.
Central to the SEC’s argument is Ripple’s sales and distributions of XRP, particularly its “programmatic” sales to buyers on crypto trading platforms and “other distributions” in exchange for labor and services. The SEC believes these should be deemed as securities offer or sales, referencing the Howey case.
Highlighting the complexity of the matter, the SEC pointed to an intra-district split, suggesting significant grounds for varying legal interpretations. The SEC emphasized that the court’s prior order could impact numerous ongoing litigations, especially those involving crypto asset trading platforms.
Jeremy Hogan, a prominent figure in the XRP community, remarked on the SEC’s choices, emphasizing that the appeal doesn’t question if XRP is a security but focuses on specific sales issues. Stuart Alderoty, Ripple’s Chief Legal Officer, shed light on the SEC’s move, noting that the regulatory body is merely in the initial phase of seeking the court’s nod for the appeal. Ripple is set to respond to this development in the coming week.
Looking ahead, Ripple and XRP’s journey in the crypto space seems promising. Despite legal challenges, the resilience and adaptability of Ripple and its community suggest a bright future, potentially paving the way for more mainstream acceptance and innovative applications in the financial sector.
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