The SEC, which is in charge of making sure financial rules are followed in the U.S., is doing something important in its fight with Ripple Labs. They’re asking a court in New York to let them appeal a decision. They asked for this right after the court said they could.
The SEC wants to focus on what Judge Analisa Torres said about Ripple selling XRP. She said that it’s not a security. The SEC disagrees and wants to talk more about it.
The SEC thinks they need to appeal now because there are important legal questions that different people have different opinions about.
Something interesting is that Judge Torres and Judge Jed Rakoff, who is in charge of another case involving the SEC, don’t agree about how to decide if something is a security.
The SEC is also worried that the decision about Ripple’s sales of XRP could also affect their other cases against big cryptocurrency exchanges like Coinbase and Binance.
SEC Acknowledges XRP is Not a Security:
In a surprising move, the SEC did something unexpected in its legal request. They agreed that digital things like XRP aren’t automatically seen as securities. They said clearly, “We don’t want to argue if these things are just computer code without any real value.” This surprised many people who follow cryptocurrencies and they see it as a big deal.
John Deaton, a lawyer who is known and who speaks for over 75,000 people who have XRP, talked about what the SEC said. He said it’s really important for the judge to know that XRP itself isn’t a security. This was a big part of their argument in the legal papers.
I have to say there is no doubt 75K #XRPHolders are a major reason the SEC is conceding this issue. We fought to have the judge actually ✍️ that the token itself is not the security. In fact, it was the first section in our argument in the Brief. https://t.co/ann7Hah7K3 pic.twitter.com/yqodFQ1eAV
— John E Deaton (@JohnEDeaton1) August 18, 2023
Ripple will give its answer to the SEC’s request on September 1, making everyone even more excited about this important legal fight.
Impact on the Crypto Market:
The SEC’s formal recognition that digital assets like XRP are not automatically securities represents a significant change in the rules.
This difference might affect how other cryptocurrencies are seen and how their legal issues are dealt with. As the case continues, people in the market are really interested in seeing what happens next. The result could shape how digital assets are regulated in the future.
Important:Â Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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