SEC Appeals Ripple Ruling, Seeks to Classify XRP as Security as Gensler Exits

Jan 16, 2025, 12:46 AM

The U.S. Securities and Exchange Commission (SEC) has formally filed its opening brief in its appeal against Ripple Labs, seeking to overturn the district court's mid-October ruling that XRP is not a security when sold to retail investors. The SEC argues that the court erred in its interpretation and that transactions involving XRP purchased through crypto asset trading platforms meet the definition of an 'investment contract' under the Howey test. Ripple's Chief Legal Officer, Stuart Alderoty, disclosed the filing and called the appeal 'noise,' suggesting that the lawsuit may be abandoned by the next administration, as SEC Chair Gary Gensler is set to leave office on January 20 under the Trump administration.