- The SEC appeals the 2023 ruling in the SEC vs Ripple case regarding XRP secondary sales
- Judge Torres ruled that secondary sales of XRP don’t qualify as securities, a key moment for crypto regulation
- Chief Enforcement Officer Gubir Grewal resigns as the SEC continues its crackdown on the crypto sector
The SEC has submitted an appeal to the relevant courts regarding the decisions in the Ripple case, as well as the case against Brad Garlinghouse and Christian Larsen for the sale of their XRP tokens.
This development could prolong the legal battle, though for the moment, there have been no direct comments from Ripple’s lawyers or the legal team representing Ripple Labs.
The appeal was filed just before the deadline, which was set for October 7. XRP felt the impact in the markets, losing some of the bullish momentum it had gained following Bitcoin’s recovery after dropping below $60,000.
In the coming hours, comments are likely to be released from legal specialists handling Ripple’s defense. Earlier today, Bitwise also announced its decision to launch a spot ETF on XRP.
The SEC’s Appeal
There are no significant details in the SEC’s appeal regarding the ruling made by the courts on August 7.
According to the SEC’s appeal submission, “the SEC respectfully appeals to the Second Circuit Court of Appeals for a final judgment from this court on August 7.”
SEC vs Ripple: The Details
The appeal addresses the August 7, 2024 decision, which involved a fine imposed on Ripple Labs amounting to only $125 million, compared to the SEC’s original demand of approximately $2 billion.
Should the SEC prevail, the fine could become substantially larger. Updates will follow as more details on the appeal emerge, along with responses from Ripple’s legal team. For now, the case remains reopened, despite a week that had otherwise been full of good news for Ripple.
Conclusion
In conclusion, the SEC’s appeal against Ripple and Gubir Grewal’s resignation mark a critical moment in the regulation of the crypto sector.
As the case continues, future decisions will have a significant impact not only on Ripple but on the entire cryptocurrency ecosystem, with potential global repercussions.
