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SEC Appeals Ruling in Ripple Case

SEC Appeals Ruling in Ripple Case

Bitget2024/10/02 22:29

The U.S. Securities and Exchange Commission (SEC) filed an appeal of the Ripple lawsuit on Oct. 2 in an attempt to overturn an earlier ruling by Judge Analisa Torres, Cointelegraph reported.

Legal experts expect the SEC to appeal Judge Torres' 2023 ruling, which found that secondary sales of Ripple's XRP did not constitute sales of securities.

Torres ruled that XRP itself was not a security because the digital assets failed to meet all of the conditions of the SEC's Howey test for categorizing financial assets as investment contracts.

As a result, the secondary sales could not be labeled as unregistered securities sales. However, Torres also explained that early sales by Ripple's founders to institutional investors did constitute securities sales due to the manner in which they were sold.

At the time, the ruling was hailed as a major victory for Ripple Labs and the broader cryptocurrency industry.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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