Ripple v. SEC Appeal: “Irrational and Misguided from the Start”
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Reporter
- The SEC has filed an appeal against Ripple’s decision, disputing that secondary sales of XRP qualify as securities transactions.
- Ripple leaders criticized the SEC’s legal maneuvering and highlighted the absurdity of the lawsuit.
On October 2, the U.S. Securities and Exchange Commission (SEC) took a significant action by submitting an appeal in Ripple’s lawsuit [XRP], aiming to overturn a recent ruling by Judge Analisa Torres.
What was Judge Torres’ ruling regarding?
Legal analysts anticipated that the SEC would appeal after the 2023 ruling that determined secondary sales of Ripple’s XRP are not deemed securities transactions.
For those unfamiliar, Judge Torres concluded that XRP alone does not satisfy all criteria of the SEC’s Howey test for investment contracts and ruled that secondary sales cannot be classified as unregistered securities sales.
Nevertheless, she observed that initial sales conducted by Ripple’s founders to institutional investors were regarded as securities transactions.
This groundbreaking decision marked a substantial victory for Ripple Labs and the cryptocurrency industry at large.
/>Criticism from Ripple executives regarding SEC’s move
However, litigation seems ongoing as criticism arises from various quarters concerning the SEC’s latest appeal statement, including remarks from Ripple’s Chief Legal Officer Stuart Alderoty. p > In a message on X (formerly Twitter), Alderoty expressed his discontent with this decision to appeal, describing it as predictable yet regrettable since it only prolongs what he referred to as a notable embarrassment for their agency. p > He emphasized that… p >“the court has already dismissed out-of-hand claims suggesting that Ripple acted recklessly; no allegations of fraud were presented nor any casualties or losses reported.” blockquote > Here, Alderoty illustrates how under its current leader, agency is leveraging aggressive legal methods against cryptocurrency enterprises instead of adhering strictly to established standards and regulations. p > He further elaborated on the subject: span > p >> “We are contemplating whether we should also file an appeal. Regardless of our path forward this time around while pressing on with our case in appellate court.” }
Alderoty wasn’t alone in expressing concerns —Ripple CEO Brad Garlinghouse also voiced shared sentiments about this situation emphasizing:
Source: Brad Garlinghouse/X . P >
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