The SEC has filed a motion to appeal a ruling in its case against Ripple Labs, focusing on the classification of Ripple’s XRP token. The appeal seeks to challenge Judge Analisa Torres’ decision that XRP is not a security when sold to the general public but is considered one when sold to institutional investors.
The regulatory agency led by Gary Gensler argues that the ruling could significantly impact other pending crypto cases. It emphasizes that an immediate appeal is essential to advance the litigation’s termination.
Judge Torres’ July ruling, hailed as a victory for the crypto industry, found that XRP was subject to securities law only when sold to sophisticated institutional investors. This approach was rejected by another federal judge in a separate case.
Ripple opposes the SEC’s appeal, stating that there is “no extraordinary circumstance” justifying an appeal before all issues are resolved. The SEC’s spat with Ripple began in 2020 when it accused Ripple of raising $1.3 billion through XRP sales.
The SEC aims to appeal the decision regarding XRP’s programmatic sales and other distributions. The outcome could set a precedent for crypto regulation and classification, potentially affecting numerous other crypto cases.
Ripple is given until September 1 to respond to the SEC’s most recent motion.