SEC Announces Appeal to Ripple Crypto Verdict A federal judge has been requested by the American to let an appeal of some of a recent decision in the Ripple Labs case. The SEC claims that the ruling conflicts with current securities legislation. With the SEC ruling that the Ripple XRP token is not a security, the cryptocurrency saw a significant win. Last week, a judge came to the conclusion that while selling to consumers on exchanges did not violate the SEC’s laws, sales of Ripple’s XRP currency to particular institutional investor’s did. The appeal states, “Respectfully, the sections of Ripple were incorrectly determined and this board should not follow them.” “SEC staff is weighing the various options for further investigation or expects to suggest that the SEC pursue such investigation.”
According to the SEC, this “improperly transforms” the Howey Test, a method that has been used for many years to determine whether an asset qualifies as a security. The agency requested that the court overturn that portion of the ruling. Additionally, attorneys for Terraform Labs and Do Kwon submitted paperwork earlier this week arguing that the outcome relating to the Ripple’s dispute should support their request to have their own SEC action dismissed. Earlier in Feb of this year, the SEC brought legal action against Terra. The Ripple ruling, according to Terra attorneys, “confirms the ethical insufficiency of the SEC’s argument” that some coins were securities. Whether the Securities and Exchange Commission appeal will proceed in court is unknown. Or if, with the latest submission, they’ll revisit the Ripple decision. If so, if the case is reopened, the victory for cryptocurrency might not last long.
For its devoted community, XRP’s chase of the one dollar milestone is a huge accomplishment. The goal of hitting $1 becomes more and more attainable as XRP keeps growing and demonstrating its tenacity. However, other factors will determine how this milestone is reached. The current legal dispute involving Xrp and the federal securities regulator [SEC], which has tremendous influence, is one important issue. Positive results in this situation could act as a catalyst, driving the intrinsic value of XRP higher. On the other hand, unfavorable events in the case can have a negative impact and impede the growth of the milestone.