On August 19th, the SEC made a significant announcement, officially recognizing the non-security classification of digital assets like XRP. This disclosure emerged as the SEC pursued an appeal against the recent ruling favoring Ripple Labs. The acknowledgment by the regulatory authority that digital assets do not possess intrinsic security attributes has generated a wave of optimism among the cryptocurrency community, especially among fervent supporters of XRP. Concurrently, the SEC has embarked on an interlocutory appeal, marking another chapter in its evolving legal confrontation with Ripple Labs.
SEC’s Affirmation of XRP’s Non-Security Status
The SEC’s recent court filing has shed light on its position regarding digital assets, specifically XRP. In the motion, the SEC explicitly stated that it does not seek appellate review of any aspect related to the fact that these underlying assets are essentially computer code devoid of inherent value. This recognition has been warmly welcomed by the crypto community, especially by the dedicated supporters of XRP. Attorney John Deaton highlighted that this acknowledgment is a result of the resolute support of over 75,000 XRP holders who actively participated in the ongoing lawsuit. Deaton emphasized that their efforts aimed to establish that the token itself should not be categorized as a security.
Read more: SEC Granted Permission for Appeal in Ripple Case: Legal Battle Continues
SEC’s Interlocutory Appeal
Simultaneously, the SEC has taken a crucial step in its legal dispute with Ripple Labs by initiating an interlocutory appeal. The regulatory agency formally requested the U.S. District Court in the Southern District of New York (SDNY) to certify its intention to pursue this appeal. This move closely follows a decision by Judge Analisa Torres, who presides over the case. Judge Torres granted the agency’s motion for leave for an interlocutory appeal, allowing the SEC to concentrate its appeal on the court’s rulings related to Ripple’s programmatic sales of XRP and other distributions. Notably, the court had previously upheld that these transactions do not qualify as securities.
Ripple Labs is slated to provide its response to the SEC’s motion by September 1, thus keeping the legal proceedings in motion and adding a layer of anticipation to the ongoing legal confrontation.
Conclusion
The acknowledgment by the U.S. SEC that digital assets, including XRP, are not inherently securities has set a precedent that resonates positively within the cryptocurrency community. The regulator’s motion to appeal the Ripple victory ruling signifies its continued commitment to shaping the legal landscape around digital assets. As the legal proceedings progress, the crypto world watches closely, awaiting further developments in this pivotal case that could potentially redefine the regulatory framework for digital assets in the United States.
