SEC Appeals Ripple's Court Victory, Continues Its Unrelenting Fight

Earlier this month, the U.S. Securities and Exchange Commission (SEC), still reeling from the disappointing fallout from legal proceedings, pledged to challenge what it believed to be erroneous judgments. The outcry from cryptocurrency enthusiasts and legal professionals was palpable.

SEC Intends To Challenge District Judge Ruling In Ripple Case

Judge Torres has ruled that Ripple's sale of XRP to investors did not violate securities laws, sparking renewed optimism across the crypto space. The ruling has implications for Ripple and offers hope to several other defendants caught up in SEC lawsuits over allegations of illegal securities sales.

Terraform Labs co-founder Do Kwon is one of the defendants who took inspiration from Ripple's results and is currently behind bars. Kwon hopes to use the Ripple verdict against regulators who accused him of fraud.

SEC Challenges Ripple’s Guidance in Precedent-Setting Ruling

Against Kwon's tactics, the SEC argued that the judge overseeing its case should ignore the precedent set by the Ripple decision. According to the SEC, Judge Torres' ruling introduced "unnecessary conditions" in the tests used to determine whether an asset qualifies as a security. The regulator also hinted that a "thorough review" was imminent.

The SEC's legal team continues to rely on nearly a century of legislation, arguing that the logic behind the recent ruling "is untenable when juxtaposed with these fundamental securities law principles."

Finally, the SEC said its staff is considering a different avenue for additional scrutiny. They also indicated their intention to advocate for such in-depth scrutiny within the SEC.

In light of Ripple's victory, a revolution has begun in the crypto world as the U.S. Securities and Exchange Commission (SEC) struggles to uphold longstanding securities laws, raising key questions about the future of crypto regulation.