Recently, justice decided that XRP, the native asset of the crypto firm Ripple is not a security. The SEC against which the company had been fighting for three years therefore lost its case. But obviously, the regulator does not intend to stop there.
SEC is considering appeal
Like a cleaver, Judge Analissa Torres’ ruling on Ripple’s lawsuit against the SEC fell yesterday. And it is partially unfavorable to the regulator since the judge considered that XRP is not a security.
In other words, justice denies the SEC the right to impose its dictate on the functioning of crypto in the markets. However, the regulator does not seem to want to give up. He could appeal the court decision.
According to the SEC spokesperson, the institution “would continue to review the decision” for this purpose. If it were to go along with the appeal, the SEC would have several arguments it could rely on.
Indeed, the SEC representative notes some positive points highlighted by the court verdict. The latter would have particularly recognized that the XRP were offered, but also sold as investment contracts. This, in defiance of securities laws.
According to the SEC representative, the justice confirmed the validity of the Howey test to analyze cryptographic transactions. Not to mention, he adds, that ignorance of securities law is not a valid defence. An argument that Judge Analissa Torres would have also recognized in the context of another trial.
We can therefore deduce from all this that the SEC has something to argue. It remains to be seen whether it will succeed. What is certain is that the case is far from being definitively closed. According to several analysts, each of the two parties could appeal given the financial stakes. To be continued…
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