The U.S. Securities and Exchange Commission (SEC) has officially appealed a previous ruling in its case against Ripple, citing conflicts with decades of Supreme Court precedent and securities law. The appeal follows the SEC’s ongoing legal battle with Ripple over the classification of XRP, a cryptocurrency created by Ripple, as a security.

Ripple Case Continues Amid SEC Appeal

The SEC’s appeal, filed with the U.S. Court of Appeals for the Second Circuit, challenges the district court’s earlier decision, which ruled that Ripple’s programmatic sales of XRP did not violate securities laws. The court found that while XRP sales to institutional investors were considered securities, sales to retail investors through exchanges were not. Ripple was ordered to pay a civil penalty of $125 million, far less than the SEC's original request of $2 billion. Ripple CEO Brad Garlinghouse responded to the appeal on social media, stating that XRP’s status as a non-security remains law despite the SEC’s appeal. “Ripple, the crypto industry, and the rule of law have already prevailed,” Garlinghouse said.

Ripple's Legal Victory and the SEC’s Ongoing Challenge

In 2023, Ripple scored a partial victory when a judge ruled in favor of its programmatic sales of XRP, a decision that was seen as a win for the broader crypto industry. However, the SEC maintains that Ripple’s actions violated securities laws and is now seeking to overturn the ruling on the grounds that it conflicts with established legal precedent. The outcome of the appeal could have significant implications for the classification of cryptocurrencies in the U.S. and the regulatory framework governing their use. Source: The Block
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