SEC appeals against Ripple verdict
The SEC is appealing the Ripple verdict. The responsible court recently determined that XRP is not a security and that the SEC is wrong with its allegations. Now the authority is asking the judge to reconsider her decision and points to the serious importance of the case.
SEC appeals Ripple verdict
The SEC is appealing the July 13 Ripple ruling . The crypto company Ripple emerged victorious from the court case – in the vast majority of cases, XRP should not be treated as a security, the presiding judge ruled.
According to a recent report by Reuters , the US Securities and Exchange Commission is not satisfied with this verdict .
The SEC tried to prove that most cryptocurrencies are de facto investment contracts in the court case that began in December 2020. The sale of the digital assets would thus fall under the country’s securities law, compliance with which is overseen by the SEC.
According to judge Analisa Torres, there is no evidence to suggest that private XRP investors expect profits to be generated by publisher Ripple. This only applies to institutional investors who have entered into direct contracts with Ripple.
Immediately after the verdict, SEC boss Gary Gensler had shown unreasonable. In most cases, there is actually no difference between classic securities and cryptocurrencies, the 65-year-old explained.
That’s what the authority argues
In a letter to Judge Analisa Torres, the SEC argues that the ruling contains “significant grounds for disagreement.” In addition, the judge is informed that the judgment is of important importance and groundbreaking for the future of the legal situation and a number of court proceedings.
Half a month after the Ripple verdict, Torres’ colleague Jed Rakoff issued a verdict against the crypto company Terraform Labs (TFL). This sold an illegal security with the stablecoin TerraUSD, since users could invest the token on the Anchor Protocol developed by TFL to receive 20 percent interest.
Judge Torres will decide independently whether to grant the SEC’s request or whether to dismiss it. Their first verdict rated the crypto industry as a great victory. New euphoria could be seen in the sudden rise in the prices of many cryptos.
By far the biggest beneficiary was of course XRP itself. The appointment of the SEC could now cause new skepticism. XRP has already lost around six percent of its value in the weekly trend, while many other cryptocurrencies have recorded slight gains over the same period.
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