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SEC seeks appeal in Ripple case over XRP token’s security classification

Published

1 year ago

August 19, 2023

SEC seeks appeal in ripple case over XRP token’s security classification

The Securities and Exchange Commission (SEC) has taken a step to appeal a recent ruling regarding the classification of Ripple Labs’ XRP token. According to Bloomberg, the US authorities made the filing on Friday, August 18, 2023.

The last ruling by Judge Analisa Torres determined that XRP is not a security when sold to the general public.

In opposition, the SEC formally requested that the Judge in Manhattan allow the issue to be certified for immediate appeal.

While the ruling in question was a preliminary motion rather than a final judgment, the SEC believes that the matter’s significance warrants swift action.

The regulatory body asserted that “the ultimate answer to these questions could affect a number of pending cases involving crypto assets.”

Ripple and the U.S. Securities and Exchange Commission (SEC) have been in court since December 2022 when the US authorities filed its lawsuit against the crypto firm.

The case centered around the regulatory classification of Ripple’s cryptocurrency, XRP, as a security or not.

The legal action claimed that Ripple engaged in an unregistered securities offering valued at more than $1.3 billion through the sale of its XRP cryptocurrency. Since then, the legal dispute has continued to date.

Apart from XRP being tagged as security, other cryptocurrencies have also been tagged as securities. This was made known when the SEC also filed cases against Binance and Coinbase for similar grounds as Ripple.

In the filing, the SEC said that XRP (XRP), Decentraland (MANA), Algorand (ALGO), Tron (TRX), BitTorrent (BTT), Terra USD (UST), Luna (LUNA), Filecoin (FIL), Binance Coin (BNB), and Binance USD (BUSD).

Others are Solana (SOL), Cardano (ADA), Polygon (MATIC), Cosmos (ATOM), SandBox (SAND), Axie Infinity (AXS), and COTI (COTI) are securities.