Ripple Lawsuit Update: When Can We Expect the US SEC Appeal? Legal Expert Weighs In
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Yet again XRP community is in fear as the US Securities and Exchange Commission (SEC) has today expressed its intention to appeal parts of the Ripple Labs case ruling. As per Bloomberg News, the SEC believes that certain aspects of the ruling do not align with the existing securities laws.
What Made SEC Appeal Again?
The Ripple XRP token, which has been at the center of the lawsuit, received a significant win as it was deemed not to be a security by the court. However, the judge ruled that sales of Ripple’s XRP to institutional investors violated SEC rules, while sales to retail investors on exchanges did not.
On the other hand, The SEC also argues that the court’s decision incorrectly transforms a well-established test for determining whether assets are securities, known as the Howey Test, into a subjective standard. Consequently, the agency is urging the court to reject this part of the ruling.
“SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.”
Notably, the Ripple ruling has also influenced other ongoing cases, such as the lawsuit against Terraform Labs and its founder Do Kwon, filed earlier this year by the SEC. Lawyers for Terra argue that the Ripple decision supports their motion to dismiss the lawsuit, emphasizing that it reinforces the inadequacy of the SEC’s argument regarding certain tokens being securities.
More Bloodbath for XRP?
Evidently, like most of the crypto assets which saw bloodshed in Friday’s session, XRP too falls from $ 0.9337 after SEC appeal news came to light. However, at $ 0.7691 this morning, XRP was down 0.40%. After a bearish start, XRP fell from $ 0.7743 to $ 0.7684. Significantly, XPR went below the $ 0.7870 – 0.7737 support band.
As of now, it remains uncertain how the SEC’s appeal will proceed in court or if they will revisit the Ripple ruling after making their new filing. If the case resumes, the victory for the crypto industry may not be long-lasting, depending on the court’s final decision on the matter.
The question arises, if the case resumes, what potential scenarios do you envision for the crypto industry? How might this legal battle impact investor confidence and the development of new cryptocurrencies? Tell us your views.