On October 2, 2024, the US Securities and Exchange Commission (SEC) filed an appeal to overturn a previous court decision in the Ripple case.
Judge Analisa Torres of the US District Court for the Southern District of New York ruled last year that while Ripple's early sales of XRP to institutional investors were considered securities, the token is not classified as a security when sold on public crypto exchanges.
The SEC's appeal came as no surprise to legal analysts, given that the 2023 decision was a major win for Ripple.
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Ripple's Chief Legal Officer, Stuart Alderoty, responded to the SEC's appeal on social media, saying it "just prolongs what's already a complete embarrassment for the agency." He also mentioned that Ripple might file its own appeal.
The company's CEO, Brad Garlinghouse, also reacted to the news, assuring that they will keep fighting in court and that the ruling that XRP is not a security still stands.
Law experts expect the appeal process to drag out, with a final decision possibly coming in 2026.
The conflict between Ripple and the SEC dates back to 2020, when the SEC accused Ripple of selling unregistered securities through XRP. While the 2023 ruling cleared XRP of being a security on public exchanges, Ripple still faced a $125 million fine for institutional sales, though this fine has been paused due to the ongoing appeal.
As the legal fight continues, XRP's price has dropped by 11% in the last 24 hours, currently sitting at around $0.53.
In other news, asset manager Bitwise has filed for an XRP exchange-traded fund (ETF) with Delaware's Division of Corporations.
