The US Securities and Exchange Commission (SEC) filed an
appeal on January 15, 2025, challenging a federal court’s decision in its
ongoing case against Ripple Labs. The SEC argues that the New York District
Court was incorrect in ruling that XRP sold to retail investors was not part of
an unregistered securities offering.
Meanwhile, XRPUSD has been heading towards the upside by
making a crucial breakout on the intraday charts.
SEC Appeals XRP Ruling, Seeks Overturn
In its appeal to the Second Circuit Appeals Court, the SEC
is seeking to overturn Judge Analisa Torres’ July 2023 ruling, which classified
XRP sales to retail investors as non-securities, while maintaining that XRP
sales to institutional investors did qualify as securities. The SEC’s filing
also disputes the exclusion of XRP issued as employee compensation and in
business transactions from being categorized as a security.
This SEC brief was hard to work thru because, IMO, the case won’t be ruled on. But I’ve come this far so, dangit, here we go! My thoughts on the initial Ripple v. SEC appeal brief…We aren’t holding back tonight. 🙂 https://t.co/l8Tcqdfuxc pic.twitter.com/bIWnJC1y3N
— Jeremy Hogan (@attorneyjeremy1) January 16, 2025
Ripple Criticizes SEC’s Repeated Appeal Attempts
This appeal follows a partial loss in the SEC’s long-running
lawsuit, initiated in December 2020. The SEC contends that retail investors
would have expected a profit from their purchases of XRP due to Ripple’s
promotional activities. It argues that Ripple’s actions made XRP an investment
contract under the Howey test, which is used to determine whether something
qualifies as a security.
Ripple’s legal team has criticized the SEC’s appeal, with
CEO Brad Garlinghouse calling the agency’s filing a repeated attempt with no
new arguments. Ripple’s Chief Legal Officer, Stuart Alderoty, expressed the
belief that the appeal would likely be abandoned under the next administration,
referring to it as a “rehash” of previous unsuccessful claims.
The case could take months to resolve, with Ripple given the
opportunity to submit counter-arguments. Additionally, the court may opt to
hold oral arguments before making a final decision. Ripple has also
cross-appealed a separate ruling in which Judge Torres ordered it to pay a $125
million civil penalty for the aspects of the case the company lost.
XRPUSD Breaks Out, Bulls Gain Momentum
XRPUSD has displayed strong bullish momentum after a period
of consolidation on the H1 chart. The last H1 candle closed above the
significant 3.20250 level, indicating a bullish breakout on the intraday
charts. This could fuel the current bullish trend, potentially driving the
cryptocurrency further upwards.
This article was written by Tareq Sikder at www.financemagnates.com.
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