The US Securities and Exchange Commission (SEC) has filed an appeal against a pivotal court ruling that classified XRP tokens as non-security. This move has led to a significant drop in XRP's market price.
In July 2023, US District Judge Analisa Torres concluded that XRP, the digital asset linked to Ripple Labs, does not satisfy the SEC's Howey Test criteria for securities. This ruling was crucial in exempting Ripple Labs from stringent securities regulations on transactions valued at $757 million.
Now, the SEC is contesting this decision at the 2nd US Circuit Court of Appeals in Manhattan, aiming to reverse it. The outcome of this appeal has the potential to reshape the regulatory landscape for cryptocurrencies.
As a result of the SEC's actions, the price of XRP has seen a dramatic decline, falling by 11.22% in the last 24 hours, now trading at $0.5339. Ripple (XRP) Price Prediction 2024/2025/2030
While Judge Torres ruled in favor of Ripple regarding XRP's non-security status, she also indicated that $728 million worth of XRP sales to institutional investors must comply with securities laws. Following this ruling, Ripple was fined $125 million in August 2024, although this penalty is currently suspended pending the outcome of the appeal.
Ripple CEO Brad Garlinghouse has voiced strong opposition to the SEC's appeal, arguing that the initial ruling should have settled the matter. He criticized the SEC for what he perceives as a waste of taxpayer resources in its ongoing litigation against Ripple.
