SEC Appeals Ripple Ruling, Putting XRP ETF Plans on Hold

Oct 2, 2024, 09:21 PM

On October 2, 2024, the U.S. Securities and Exchange Commission (SEC) filed a notice of appeal in its case against Ripple Labs, seeking to overturn U.S. District Judge Analisa Torres's July 2023 ruling. The initial decision determined that while Ripple's institutional sales of its XRP token violated securities laws, sales on retail exchanges did not, asserting that crypto assets are not inherently securities. The SEC argues that the ruling conflicts with Supreme Court precedent and restricts its ability to regulate cryptocurrency markets. Ripple was ordered to pay a $125 million civil penalty for the improper sale of XRP to institutional investors. Ripple's Chief Legal Officer, Stuart Alderoty, stated that the company is considering a cross-appeal, potentially challenging the institutional sales ruling or the penalty amount. The SEC's appeal also places plans for an XRP Exchange-Traded Fund (ETF) on hold. Following the announcement, XRP experienced a sharp decline in value.