TechFlow news, October 18 — According to Bitcoin.com News, the U.S. Securities and Exchange Commission (SEC) has officially filed an appeal with the U.S. Court of Appeals for the Second Circuit, challenging the XRP ruling in the Ripple case, reigniting the debate over cryptocurrency regulation.
The SEC's appeal focuses on several key points: first, contesting the court's determination that Ripple's sales of XRP on digital asset platforms do not constitute unregistered securities offerings; second, rejecting the finding that individual XRP sales by Ripple executives Brad Garlinghouse and Chris Larsen did not violate securities laws; and third, objecting to the court's ruling that Ripple's non-cash distributions of XRP in exchange for services did not breach the Securities Act of 1933.
Previously, on July 13, 2023, Judge Analisa Torres issued a partial victory for Ripple. The court ruled that XRP sales on digital trading platforms do not qualify as securities, but found that Ripple's sales of XRP to institutional investors constituted unregistered securities offerings. On August 7, 2023, the final judgment ordered Ripple to pay a $125 million civil penalty and prohibited the company from further violations of securities laws.
