The "XRP - Ripple Labs" case has once again come into the spotlight as the US Securities and Exchange Commission (SEC) plans to appeal the court's decision regarding the status of XRP as a partially exempt cryptocurrency from securities laws. This decision is seen as a setback for the agency's efforts to regulate the crypto market.
According to Reuters, the SEC has requested that Judge Analisa Torres in Manhattan allow a federal appeals court to review its ruling issued on July 13th, which stated that the sale of the encrypted currency XRP on public exchanges complied with federal securities laws.
In a victory for Ripple Labs, the company behind XRP, a ruling was obtained last month confirming that XRP is not considered a security when sold to individuals but is classified as a security when sold to institutional investors only.
Judge Torres stated that Ripple did not violate the law when XRP tokens were sold on public exchanges because buyers did not have a reasonable expectation of profit.
This ruling is seen as a win for the cryptocurrency industry against the US Securities and Exchange Commission, which has been involved in legal disputes with crypto platforms. The SEC filed a lawsuit against Ripple, its CEO Brad Garlinghouse, and co-founder and executive chairman Chris Larsen in December 2020, accusing them of illegally raising over $1.3 billion through the sale of unregistered securities in the form of XRP.
However, it's important to note that Judge Torres' decision was not a complete victory for Ripple, as it found that the company violated securities laws by selling XRP to institutional investors.