The SEC is launching an appeal against a recent court decision made by Judge Analisa Torres about a month ago. This decision came in an ongoing legal case involving Ripple Labs. Moreover, the case centers on Ripple Labs’ legal dispute that selling XRP, to investors should not be considered a security.
Additionally, on August 9th, the SEC sent a message to Judge Analisa Torres, who was in charge of the case. In the message, the SEC expressed its opinion that the court’s decision should be reviewed by a higher appellate court.
The SEC also asked for a pause in the legal proceedings while the appeal is ongoing. They mentioned that the outcome of the appeal could affect other ongoing legal cases involving the SEC. Currently, the SEC is involved in legal disputes with different cryptocurrency companies, such as Binance and Coinbase, regarding possible violations of securities regulations.
SEC’s Ongoing Pursuit of Clarity in the Ripple Labs Legal Dispute and XRP Partial Victory
Additionally, the SEC wanted the court’s decision to be supported. This decision stated that the creation and selling of Ripple’s XRP units on cryptocurrency exchanges, as well as individual transactions, should not be seen as securities transactions.
The Commission highlighted a decision made by the judge in a different case involving Terraform Labs. In that case, Judge Torres’ statement was disagreed with. This opposing decision suggested that cryptocurrencies traded on exchanges could sometimes be considered as securities, depending on certain situations.
Around thirty days after this event, the SEC sent its message. This happened after Ripple had a partial victory in its dispute with the SEC about whether XRP should be considered a security.
Judge Torres stated that the XRP token itself is not like a security. But she added that in certain cases, selling XRP tokens could be seen as securities, especially when they are given to big investors, not when they are sold on exchanges to regular traders.
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