XRP lawsuit heats up again, the SEC body files appeal against court ruling

The American securities regulatory body appealed in the XRP lawsuit to prove XRP coin is an unregistered security token.

Since Dec 2020, Ripple & the United States Securities and Exchange Commission (SEC) have been in a legal fight. The SEC argued that Ripple executives misused the XRP cryptocurrency for payment services and called XRP an unregistered security token. However, in July 2023, the court ruled that XRP was not a security token.

This case was almost over, and most people thought the SEC would not object to the court’s ruling, as they had repeatedly failed in legal battles against crypto companies under traditional rules & laws that don’t apply to cryptocurrencies.

In a surprising turn, the US SEC filed an appeal against the court judge’s ruling on XRP’s nature, aiming to prove that XRP was always a security token.

Ripple’s chief legal officer Stuart Alderoty said that the SEC’s appeal in this case is highly disappointing but unsurprising. He also mentioned that the SEC’s decision to challenge the court ruling is a bad move that goes against the crypto sector. Alderoty noted that the SEC’s Enforcement Director announced his resignation just an hour before the appeal was filed, somthing similar to resignation of former SEC chairman just before the lawsuit against Ripple in Dec 2020.

Ripple CEO criticized the US SEC for continuing the legal battle over XRP’s status, stating that the SEC’s actions have damaged its credibility rather than protecting investors. He emphasized that Ripple, the crypto industry, and the rule of law have already prevailed, and XRP’s status as a non-security remains unchanged despite the SEC’s misguided appeal. He also highlighted the SEC’s previous failed attempt to challenge XRP’s classification.

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