SEC challenges Ripple with appeal over XRP’s status

SEC files an appeal against Ripple’s recent court win, reigniting the debate on XRP’s status as a security.

The US Securities and Exchanges Commission (SEC) has filed an interlocutory appeal of the trial sentence against Ripple. The regulator aims to confront the fact that XRP was not considered a security by the judge.

The new trial is set to start in the second quarter of 2024 between April 1 and June 30, 2024. The SEC expressed its concerns about the problems that could arise from the ruling in the Ripple case.

The filing reads,

“Specifically, the SEC seeks to certify the Court’s holding that Defendants’ ‘Programmatic’ offers and sales to XRP buyers over crypto asset trading platforms and Ripple’s ‘Other Distributions’ in exchange for labor and services did not involve the offer or sale of securities under [the Howey test],”

SEC’s appeal against Ripple

Ripple’s chief legal officer Stuart Alderoty said on Twitter that the SEC doesn’t have the right to appeal. He added that Ripple will file its response next week.

Last month, Judge Torres ruled in favor of Ripple, explaining that XRP is not security regarding exchange programmatic sales.

In December 2020, the SEC filed a lawsuit against the company and two executives, aiming to remove the cryptocurrency from different exchanges.

The current landscape for cryptocurrency companies in the US seems complicated. Due to the current regulatory scenario in the country, some of the major crypto companies in the US are looking to shut down their operations or move to another crypto-friendly region.

The Fed is currently trying to control cryptocurrency-related banks with its recent program known as the Novel Activities Supervision program.

On the other hand, different regulators, like the US Commodities and Futures Trading Commission (CFTC) and the US SEC have been suing some of the most prominent cryptocurrency players, like Binance and Coinbase.