XRP Takes 10% Hit After SEC Files Appeal in Ripple Lawsuit
The appeal challenges a ruling that clarified while some XRP transactions are securities, XRP itself is not inherently a security.
XRP’s value dropped over 10% on Thursday after the SEC filed an appeal against the court’s decision in its lawsuit against Ripple. This follows Judge Analisa Torres’s final ruling on Aug. 7, imposing a $125m penalty on Ripple, far less than the SEC’s initial $2b demand .
The court ruled that Ripple’s XRP sales to institutional investors were securities transactions, resulting in the penalty. However, Judge Torres said that these sales were neither fraudulent nor malicious, with no fraud claims or financial harm shown.
Further, the ruling clarified that while certain XRP transactions are considered securities, XRP itself is not inherently a security, providing key regulatory guidance for Ripple and the broader industry.
SEC Appeal Aims for XRP to Be Classified as Security Across All Transactions
The SEC appealed to the Second Circuit Court of Appeals, indicating its intent to challenge the ruling on several grounds. Central to the SEC’s appeal is its belief that the district court’s decision conflicts with long-standing Supreme Court precedents and established securities laws.
According to the SEC, XRP should be classified as a security in all sales, whether institutional or retail. It argues that XRP’s classification shouldn’t differ based on the transaction type.
Ripple’s CLO Says SEC Appeal is ‘Embarrassing’
Ripple’s chief legal officer Stuart Alderoty said on X that the SEC’s appeal was “disappointing, but not surprising.”
“This just prolongs what’s already a complete embarrassment for the agency. The Court already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses,” he said.
Meanwhile, Ripple CEO Brad Garlinghouse said the company is prepared to defend its position in court for as long as necessary.
“Let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” he said.
Garlinghouse discussed the lawsuit last month at KBW2024 in Seoul, South Korea. He said he was uncertain about whether the SEC would appeal, yet he maintained that there was no viable way for the regulator to overturn the fundamental decision that “XRP is not, in and of itself, a security.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Cats claim page closed and is calculating your airdrop now
Solana plummets after failing $161 breakoutᅳIs a bigger crash coming?
Share link:In this post: Solana’s (SOL) price faces challenges maintaining its upward momentum after failing to attain $161 as a support level. Solana’s failure to breach the $161 resistance level has strengthened bearish sentiment. Several digital assets have lost the gains they saw last month after tensions between Iran and Israel escalated.
Bitcoin Price: Coinbase Premium Signals Potential Upside
Japan’s Banking Titans Unleash Revolutionary Stablecoin Test: A Glimpse into the Future of Finance