A new twist in the Ripple case against the SEC has just shaken the community. In the midst of a legal battle, the Securities and Exchange Commission (SEC) filed a last-minute appeal, relaunching a trial that could well define the future of cryptos in the United States. Since the historic decision of Judge Analisa Torres in July 2023, the question of whether sales of XRP should be considered securities remains at the heart of the debates. The timing and arguments put forward by the SEC in this appeal took market participants by surprise, as did the XRP community, which saw it as a desperate attempt at regulation through repression.
The SEC's appeal, a final legal leap
In an unexpected turnaround, the SEC filed a last-minute appeal, and is focusing its action on specific points of the decision rendered in July 2023. Indeed, if the agency no longer contests the fact that sales of XRP to individuals on exchange platforms do not constitute securities, it attacks the court's findings with regard to institutional sales and transactions in non-monetary consideration. According to the filing submitted by the SEC, sales of XRP to large institutional investors would violate securities laws, which had already landed Ripple with a $125 million fine earlier in the case.
Ripple, for its part, also filed a cross-appeal, seeking to challenge other aspects of the initial judgment. Stuart Alderoty, Ripple's chief legal officer, declared that “the SEC’s attempt to appeal will backfire.” He emphasizes that the decision on sales of XRP to individuals “remains intact”. The SEC's objective is clear: to redefine the contours of the application of securities laws in the crypto world.
Potential reactions and consequences for the industry
Faced with this call, the XRP community and crypto defenders were quick to react. Many say they are outraged by the timing of the filing of the appeal. Thus, they point out that the SEC would have exceeded the 14-day deadline required to submit its official request. Some members of the XRP community have even expressed their frustrations on social media. They accuse the SEC of “delaying tactics.” Additionally, Ripple quickly explained that the key decision on not qualifying sales of XRP to individuals as securities was not in dispute, which reinforces the company's confidence in a favorable outcome.
Beyond Ripple, this case could set a legal precedent for the entire crypto industry in the United States. If the appeals court were to agree with the SEC on certain points, it could pave the way for stricter regulation of institutional sales of cryptos. On the other hand, a victory for Ripple would solidify the position of companies in the sector in their fight against excessive regulation. In any case, the coming months will be decisive in determining the future contours of American legislation on cryptos. This affair, far from being a simple isolated conflict, is poised to become a major episode for the future of regulations in the crypto sphere.
The outcome of this appeal could redefine the future of Ripple, but also the entire legal framework surrounding cryptos in the United States. If the SEC succeeds in obtaining a favorable review, it could increase regulatory pressure on companies in the sector, particularly those engaged in institutional sales. Conversely, a new victory for Ripple would strengthen the position of crypto players against the authorities, with a halt to the SEC's attempts to classify cryptos as securities. In this high-stakes legal battle, the entire industry has its eyes glued to upcoming developments that could influence the future of the regulation of these assets well beyond American borders.
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