XRP’s Legal Landscape: SEC’s Focus on Sales Appeal and Implications for Ripple
The U.S. Securities and Exchange Commission (SEC) has chosen not to challenge the ruling by District Judge Analisa Torres that XRP is not a security, according to a lawyer’s explanation.
However, the SEC is pursuing an appeal related to “programmatic and individual sales issues,” with the lawyer clarifying that if the appeal succeeds, Ripple would be unable to use exchanges for sales facilitation. The SEC’s focus is on sales issues, distinct from XRP’s non-security status, as highlighted by Jeremy Hogan, a partner at Hogan & Hogan law firm.
He also emphasized that these are separate matters. Hogan reiterated that XRP is not considered a security as per Judge Torres’ ruling, but pointed out that if the SEC wins its appeal on sales, Ripple’s use of exchanges for sales could be restricted. Hogan indicated that exchanges might keep XRP listed if they can verify sales are not from Ripple. After Judge Torres’ ruling, SEC Chairman Gary Gensler expressed disappointment with the judge’s stance on retail investors but affirmed continued enforcement against non-compliant crypto firms.
Gensler views crypto as highly speculative and prone to fraud. In its lawsuit against Terraform Labs and Do Kwon, the SEC contested some aspects of the Ripple court ruling on XRP, with Judge Jed S. Rakoff also differing on the approach taken in the SEC v. Ripple case involving XRP.
Clever Robot News Desk 14th August 2023
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