Following its defeat against the crypto firm Ripple, the reaction of the SEC was expected. The regulator maintained doubts about his real intentions. Some even felt that he had nothing to gain by engaging in such a procedure. That’s not what the SEC thinks after all.
SEC disagrees with Judge Analisa Torres’ decision
Soon, the case between Ripple and the SEC should see a new decisive turn. The SEC confirmed this outlook by expressing its opposition to the court ruling in favor of Ripple.
Consequently, the regulator has formalized its intention to appeal of the decision rendered by Judge Analisa Torres. Recently, the latter transferred the case to one of her colleagues, Judge Sarah Netburn.
The latter could therefore hear the arguments of the SEC during the next developments in the case. For now, the financial regulator believes that the decision rendered does not comply with US securities laws.
According to the SEC, Judge Analisa Torres is wrong. This, because it considers that XPR can be sold to institutional investors, but not to retail users. For this reason, his decision must absolutely not be followed.
Moreover, the policeman of the American stock market considers that the verdict empty of its substance, the Howey test. The latter, used in particular to determine whether an asset is movable or not, would have become a kind of subjective standard.
It is therefore for all these reasons that the SEC decides to appeal. A procedure which adds more suspense to the final outcome of this legal battle which has been going on for about three years.
With this development, a question arises. Whether the victory of Ripple and the crypto industry would ultimately not be short-lived. Nothing allows in the current circumstances to specify it. Because the impact of the appeal procedure initiated by the SEC remains difficult to predict.
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