TechFlow news — The U.S. Securities and Exchange Commission (SEC) filed an appeal on Friday of a federal judge's ruling that Ripple's exchange-based sales of XRP do not violate securities laws, one day after the judge granted the SEC permission to appeal.
The SEC is specifically appealing the judge’s determination that Ripple’s programmatic sales of XRP on exchanges did not constitute unregistered securities offerings.
The SEC argued that this ruling could have significant implications for its ongoing litigation against Coinbase and Dragonchain, among others. In its filing, the SEC emphasized that its position focuses on the manner in which XRP was sold, rather than on the nature of the asset itself.
The SEC also contended that a key legal question is whether sales of crypto assets by issuers on trading platforms lead investors to expect profits derived from the efforts of the issuer.
If the appeal is granted, the SEC intends to petition the Second Circuit Court of Appeals to assume jurisdiction over the case. Ripple must file its response to the SEC’s latest motion by September 1.
