Summary
- The US Securities and Exchange Commission (SEC) has filed a motion to challenge a recent ruling in its case against Ripple Labs.
- Ripple Labs had managed to achieve a partial win after the court ruled that secondary sales of XRP do not constitute an investment contract.
- The SEC is now arguing that the decision fails to reflect existing securities regulations, signaling an appeal may be on the way.
Introduction
The legal battle between the United States Securities and Exchange Commission (SEC) and Ripple Labs appears to be far from over. While Ripple Labs had managed a partial win following a recent court ruling, the SEC doesn’t seem to be backing down just yet.
SEC’s Motion
According to a report by Bloomberg, the SEC has asked a federal judge to ignore key parts of the recent ruling in its case with Ripple Labs. The regulator argues that it fails to reflect existing securities regulations. In another case – against Terraform Labs and former Terra-Luna CEO Do Kwon – the agency says: “Ripple creates an artificial distinction between the expectations of sophisticated institutional and retail investors, improperly transforms Howey’s reasonable investor inquiry into a subjective one, and turns on its head the reasoning underlying Howey and other cases.”
Recent Court Ruling
Judge Analisa Torres recently ruled partially in favor of Ripple Labs in their case against the SEC, arguing that secondary sales of XRP do not constitute an investment contract. The price of XRP exploded immediately after news broke out and has doubled since then.Is XRP in Trouble Again? With the SEC signaling potential appeal, this case might be headed for trial which could potentially drag on for some time, putting more uncertainty around XRP’s future.
< h2 >Conclusion It is still unclear how this legal battle will eventually pan out but for now it looks like there won’t be any definitive resolution anytime soon. Investors should keep an eye out for further developments going forward as they may have major implications for Ripple’s business operations as well as its native cryptocurrency – XRP.