The United States Securities and Exchange Commission (SEC) continues to confuse the cryptocurrency industry, first by the methods it uses to classify most digital assets as securities, and now, by failing to present a key document to the appeal the decision of federal judge Analisa Torres who ruled, last year, that the sales of the XRP token by the company Ripple Labs, through cryptocurrency exchanges, do not violate the country’s securities laws.
As journalist Eleanor Terret, who is closely following the case, warned yesterday, the regulatory agency filed a “notice of appeal” with the Second Circuit Court this week, but without form C, which is essential as a requirement of these legal procedures.
As indicated by Terret, it is understood that in his notification of appeal filed Earlier this week, the SEC omitted the document in which it notifies whether its appeal is against the decision that the XRP token is not a security when sold on exchanges or if it disagrees with the $ 125 million fine, instead of the $2 billion requested by the agency.
This ambiguity, presented by the SEC, adds confusion because it is unknown if the agency actually intends to move forward or, on the contrary, will end up reaching an agreement with Ripple. This, taking into account that the company has 14 days to file a counter-appealand without Form C you would not be clear about where you should point in your defense.
In any case, everything seems to indicate that the SEC will appeal the court ruling that points to the fine of 125 million dollars to Ripple, since in its submitted documents it made it clear that it disagrees with the final decision taken on August 7. which refers to the fine.
More tension between Riple and the SEC
When it was believed that the case between the SEC and Ripple was about to be closed after more than four years of legal battle, the agency decided to appeal the sentence emanated from the Court. That was not seen coming since Ripple had respected the decision made by Judge Analisa Torres and expressed their willingness to pay the fine of USD 125 million in about 30 days, at most.
In any case, it is not ruled out that both parties could reach an agreement at any time, which would open the door for the SEC to withdraw the appeal. So manifests it Stuart Alderoty, Ripple’s chief legal officer who believes that regulatory agency may lean toward withdrawing appeal. His conjecture is supported by the forceful statements that have emerged from the Second Circuit Court of Appeals, based on a recent decision.
As Alderoty lets us know, the court stated: “we do not agree with the SEC.” He also highlighted that the court noted “we are not convinced” by the arguments presented by the regulatory agency.
This failure is added to a series of disagreements between the organization and the judges, where the “SEC counterarguments were described as useless”, evidencing the lack of foundation in the regulatory entity’s claims in this complex case regarding the classification of cryptocurrencies.
The Court’s words not only suggest an implicit endorsement of Ripple’s position, but also raise questions about the effectiveness and regulatory approach of the SEC towards the cryptocurrency sector.
On the other hand, it is noteworthy that the SEC has also been under scrutiny by legislators. As previously reported by CriptoNoticias, The 5 SEC commissioners appeared before the Congressional Financial Services Committee. It was a hearing in which legislators did not skimp on criticism and confrontations with Gary Gensler, current president of the regulatory agency.
Currently, many actors criticize and accuse the SEC of creating a climate of uncertainty that hinders innovation and competitiveness in a dynamic global market. Meanwhile Maxine Waters, ranking member of the Financial Services Committee and a Democratic representative from California, highlights the urgent need for advance specific regulation for the cryptocurrency industry that operates in the United States.
