- In the appeal, the SEC also claimed that XRP buyers, comprising retail investors, would have anticipated a profit because of what it claimed was Ripple’s promotional efforts of the token.
- Judge Torres declared XRP was security when sold to institutions but it wasn’t security when sold to retail investors by exchanges.
- On January 15, the Chief Executive Officer of Ripple, Brad Garlinghouse said that the SEC was doing the same thing continuously and anticipating dissimilar results.
The Securities and Exchange Commission of the United States has filed its case requesting the ruling of a federal court judge in its moderately failed case against Ripple Labs, which has been criticized by the chief legal officer of the firm.
In a filing of January 15, the SEC declared to the Second Circuit Appeals Court that a New York District Court was not right to rule that XRP. It requested the appeals court to reverse Judge Analisa Torres’s July 2023 ruling and have XRP sales to retail investors categorized as unregistered securities, as well as handling an updated judgment to Ripple if reversed.
Judge Torres declaration
The SEC also claimed that XRP was given as an employee remuneration and in business deals was also incorrectly excluded from being categorized as a security. The recent SEC filing steps forward with an appeal it introduced in October after the agency partially lost its long-running suit against Ripple it filed in December 2020.
Judge Torres declared XRP was security when sold to institutions but it wasn’t security when sold to retail investors by exchanges, as those investors did not know who the seller was. In the appeal, the SEC also claimed that XRP buyers, comprising retail investors, would have anticipated a profit because of what it claimed was Ripple’s promotional efforts of the token.
Further, it went on to claim the efforts of Ripple to make XRP an investment contract under the securities-explaining Howey test. On January 15, the Chief Executive Officer of Ripple, Brad Garlinghouse said that the SEC was doing the same thing continuously and anticipating dissimilar results.
“As anticipated, the appeal brief of the SEC is a rework of so far crashed arguments and is probably to be uninhibited by the upcoming administration,” the chief legal officer of Ripple, Stuart Alderoty posted on X.
Cases carried to the upcoming administration
The prominent media outlet, Reuters published that the SEC under upcoming President Donald Trump could hold the agency’s legal proceedings on cases that don’t comprise fraud allegations, meaning cases over securities law breaches could inherently be abandoned.
Jeremy Hogan, a pro-crypto lawyer posted on X that he does not believe the case will be ruled on and that he spotted the brief as lackluster, almost as though the drafter knew he was just wasting his time.
At the time of writing, the price of XRP was 15.77% up and the price was hovering at around $3.18. The overall market capitalization stands at $182.88 billion.
