• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

SEC Appeals in Ripple Case: XRP Sales and Legal Classification

user avatar

by Giorgi Kostiuk

3 months ago


In the ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs, the SEC has filed an appeal against a July 2023 ruling. This case holds significant implications for the cryptocurrency industry, particularly regarding the legal classification of XRP and whether it should be considered a security.

SEC Challenges District Court’s Ruling

The SEC’s appeal challenges the district court's decision, which partially favored Ripple. The court ruled that Ripple’s sales of XRP to retail investors, conducted through cryptocurrency exchanges, did not qualify as a violation of federal securities laws. The SEC disagrees with this ruling, particularly the court’s conclusion that transactions on crypto exchanges did not meet the Howey Test—the legal standard used to determine if an asset qualifies as a security.

SEC’s Focus on Ripple’s Promotional Efforts

A key part of the SEC’s argument lies in Ripple’s promotional efforts. The agency asserts that Ripple’s activities were designed to increase demand for XRP and create a perception of value among investors. According to the SEC, Ripple’s marketing generated expectations that XRP would increase in value, making it function like a security.

As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration.Stuart Alderoty

The Dispute Over “Investment Contracts”

At the heart of the case is whether Ripple’s sales of XRP to retail investors and through various non-cash transactions should be classified as investment contracts. The SEC argues that all XRP transactions, no matter how or through whom they are sold, qualify as securities under the Howey Test. Ripple, on the other hand, maintains that XRP is a digital currency, not a security.

The SEC’s appeal aims to overturn the district court's final judgment that favored Ripple. If the SEC succeeds in this appeal, the case would return to the district court for further proceedings.

0

Share

Other news

AI Agents from Unstaked: Revolutionizing Crypto Usage

Unstaked introduces AI agents that promise automation and real results for users in the crypto world.

user avatarGiorgi Kostiuk

a few seconds ago

Michael Saylor: BlackRock IBIT Could Become the Largest ETF in the World

Michael Saylor predicts BlackRock's Bitcoin ETF will rank first among ETFs within ten years.

user avatarGiorgi Kostiuk

17 minutes ago

DeFi Development Corp Plans to Raise $1 Billion for Solana Token Purchases

DeFi Development Corp files with SEC to raise $1 billion targeting an increase in its Solana token holdings.

user avatarGiorgi Kostiuk

17 minutes ago

Raphael Coin Unveils Tokenized Renaissance Piece: A New Era for Art

Raphael Coin has launched the token 'Recto: Study for the Battle of the Milvian Bridge', offering fractional ownership of a Renaissance artwork.

user avatarGiorgi Kostiuk

18 minutes ago

MAGACOINFINANCE: New Opportunities and Growth Predictions

Analysis of the growing interest in MAGACOINFINANCE and the opportunities it offers against other cryptocurrencies.

user avatarGiorgi Kostiuk

19 minutes ago

Altcoin Market Overview: Shiba Inu, Hedera, and Emerging Player Web3 ai

Examining the current state of Shiba Inu and Hedera altcoins, along with the prospects of Web3 ai amidst market changes.

user avatarGiorgi Kostiuk

an hour ago

dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.