The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) took a significant turn recently, with Ripple emerging victorious on a crucial point: the court ruled that XRP does not qualify as a security.
SEC Faces Appeal Deadline
The SEC is under pressure as it faces a deadline in September 2024 to decide if it will appeal the August 2024 ruling. This decision stated that XRP, in itself, is not a security. Since the ruling was issued, the SEC has remained silent, prompting much speculation about its potential next move. Ripple CEO Brad Garlinghouse addressed these concerns during his speech at [Korea Blockchain Week 2024 (KBW2024)](https://koreablockchainweek.com/), stating that the SEC does not have a valid legal argument to reverse the decision.
Legal Experts Weigh In
Legal analysts are closely monitoring the Ripple vs SEC case. Prominent lawyer Bill Morgan agreed with Garlinghouse’s view that the SEC has little chance of overturning the verdict. He drew parallels to a previous case, SEC v. Payward (the Kraken case), where the court similarly dismissed SEC’s arguments, strengthening Ripple's position.
Ripple’s Ongoing Legal Battle
Despite this partial victory, Ripple's legal challenges are not over. While the court’s decision on XRP is a positive development for the company and its community, the SEC's broader regulatory efforts in the crypto space continue, requiring Ripple to navigate its legal strategy carefully.
The court's ruling on XRP represents a significant milestone for Ripple, though the possibility of SEC's appeal remains. The company and the crypto market continue to observe developments and brace for potential changes in regulatory policies.
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