The SEC seeks to appeal the final ruling handed down by U.S. District Judge Analisa Torres.
It alleges that the decision conflicts with Supreme Court precedents and securities laws.
The United States Securities and Exchange Commission (SEC) presented this October 2 an appeal to the decision of federal judge Analisa Torres who ruled, last year, that the sales of the XRP token by the company Ripple Labs, to through cryptocurrency exchanges, did not violate the country’s securities laws.
In a new court filing, the SEC filed a notice with the Second Circuit Court of Appealssignaling his intention to appeal the sentence, considering that the district court’s decision “conflicts with decades of Supreme Court precedent and securities laws«. Consequently, they present the case before the Second Circuit, according to an agency spokesperson.
Upon learning of the SEC’s actions, Ripple CEO Brad Garlinghouse manifested his opinion on the issue in X, noting that if SEC Chairman Gary Gensler and the SEC were rational, they would have put this case behind them a long time ago. “It certainly has not protected investors and has instead damaged the credibility and reputation of the SEC,” he commented.
For his part, Ripple’s legal director, Stuart Alderoty, spoke about the case, describing the organization’s attitude as “disappointing, but not surprising.” For the lawyer, the appeal only prolongs “what is already a complete embarrassment for the agency.” The Court has already rejected the SEC’s suggestion that Ripple acted recklessly, and there were no allegations of fraud and, of course, there were no victims or losses.
At a legal level, he explained that the company is considering filing a cross-appeala legal resource that will allow a possible new decision to be reviewed. “Either way, the SEC’s lawsuit has been irrational and misguided from the beginning, and we are ready to prove it, in the appeals court (once again taking the lead on behalf of the industry).” express Alderoty in X.
The news has had a negative impact on the price of the cryptocurrencywhich fell more than 10% of its value in the last hours. At the time of this edition it is trading at USD 0.53, according to data from CoinMarketCap.
As CriptoNoticias reported, the decision made by the court in July last year represented a partial victory for Ripple.
On the one hand, it was determined that programmatic sales and other token distributions should not be classified as securities. Although on the other hand, he also said that institutional sales of XRP violated federal securities laws. For this reason, it imposed a civil penalty on the company of USD 125 million against Ripple, well below the almost USD 2 billion that the SEC requested in restitution, late payment interest and civil penalties.
The above means that XRP can be considered a security in certain circumstances, but not in others. A ruling that did not please the SEC, which is now presenting its appeal on the deadline established for this action.
