Ripple to Appeal Against SEC’s Decision on the Non-Security Status of XRP
The fight between Ripple Labs and the United States Securities and Exchange Commission is about to take a new turn. Ripple has been gearing up for another fight in court against the appeal of the US securities regulator against a court decision that said retail sales of XRP did not constitute a violation of security laws. The decision that gave Ripple, along with the cryptocurrency market, a big relief, has been appealed by them.
Ripple Plans to Defend XRP’s Status
In a post on social media, Brad Galinghouse declared that Ripple will join the opposition against the appeal of them on October 3. Galinghouse lambasted the move as “misguided” while claiming that the regulator has already lost on crucial points. He expressed that this is long-term support in the company’s respect for the defense of XRP’s status as a non-security, established by the court’s ruling in July.
Appeal – Ripple Response
Them filed an appeal on Oct. 2 against the July 13 ruling by Judge Analisa Torres of the Southern District Court of New York. She had previously ruled that XRP would not be regarded as a security according to the Howey Test when sold to retail investors. It was an important win for Ripple and a substantial defeat to the stern thirst of them to regulate cryptocurrencies.
It did, however, rule that the institutional sales of XRP by Ripple were in violation of securities laws. Them had sought a penalty as high as $1.95 billion against Ripple for those institutional offers of the cryptocurrency. The eventual fine came to $125 million, though Ripple would have to file future sales of securities with them.
The Long Road Ahead for Ripple and the Crypto Industry
The Ripple legal team was already prepared for a long haul in the legal battle, with some industry experts even going so far as to forecast that the appeals court would not rule one way or the other before 2026. Whatever be the ongoing tussles in courts of law, Ripple is truly ambitious worldwide: it has just received approval in Dubai.
