New York, Thursday, October 03, 2024-The US Securities and Exchange Commission (SEC) is appealing a district court ruling in its case against Ripple, citing a conflict with Supreme Court precedent.
According to an official statement filed on Wednesday, the SEC contends that the decision undermines decades of securities law.
Ripple CEO Brad Garlinghouse responded defiantly, stating that the court has already established XRP’s status as a non-security.
The SEC initially sued Ripple in 2020, alleging unregistered securities sales of XRP, seeking $2 billion. Ripple was instead ordered to pay $125 million in penalties.
The appeal follows a July 2023 ruling in which the court determined that while Ripple’s programmatic XRP sales did not violate securities laws, direct sales to institutional investors did constitute securities transactions. Garlinghouse maintained Ripple’s stance that the SEC had lost on critical points of the case.
The SEC aims to challenge this ruling in the U.S. Court of Appeals for the Second Circuit, with ongoing debates on whether XRP should be classified as a security continuing to shape the future of crypto regulation.
The filing can be seen here.
