• 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

2 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

Ostium Introduces Innovative Points Program for Users

Ostium launches Points Program to boost user engagement with a multifaceted rewards system on its trading platform.

user avatarGiorgi Kostiuk

15 minutes ago

Tether Enhances Its Position by Acquiring 8,888 BTC for $735M

The latest purchase of 8,888 BTC has solidified Tether's position as a leading Bitcoin holder, taking its reserves to 92,647 BTC.

user avatarGiorgi Kostiuk

36 minutes ago

Ostium Introduces New Points Program

Ostium has launched a points program to incentivize users. Learn more about the system and its features.

user avatarGiorgi Kostiuk

36 minutes ago

Top Cryptos for Quick Profit in 2025: Qubetics, Sonic, and Cronos CRO

An analysis of Qubetics, Sonic, and Cronos CRO as potential leaders for rapid growth in the crypto market by 2025.

user avatarGiorgi Kostiuk

44 minutes ago

Cryptos to Invest in April 2025: Qubetics, HNT, and ICP

Exploring the prospects of Qubetics, HNT, and ICP as cryptocurrencies for investment in April 2025.

user avatarGiorgi Kostiuk

44 minutes ago

BlackRock Approved by FCA for Crypto Asset Operations in the UK

BlackRock gains FCA approval to operate in crypto assets in the UK, opening new opportunities for European investors.

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.