XRP has taken a significant hit in the crypto market following the latest legal developments in Ripple’s ongoing battle with the U.S. Securities and Exchange Commission (SEC). On October 2, the SEC filed an appeal against a pivotal court ruling that had previously provided some clarity regarding XRP’s status as a non-security. As a result, the price of XRP dropped sharply, losing 12% of its value within a single trading day.
Ripple vs. SEC: A Prolonged Legal Battle
The Ripple vs. SEC saga has been an enduring and contentious case for the crypto industry. Ripple, a San Francisco-based fintech company, has been embroiled in a legal dispute with the SEC since December 2020. The SEC initially sued Ripple, claiming that XRP, Ripple’s native cryptocurrency, was sold as an unregistered security. However, a major ruling in 2023 by Judge Torres concluded that secondary sales of XRP did not meet the criteria to be classified as securities under the Howey test, a legal framework used to determine whether an asset constitutes an investment contract.
Despite this partial victory for Ripple, the SEC has decided to push forward, appealing the court’s decision. The latest appeal, shared by defense attorney James Filan on social media platform X (formerly known as Twitter), seeks to overturn the ruling and reassert XRP as a security.
Ripple’s Response: Vowing to Fight
Ripple’s top brass wasted no time in addressing the SEC’s appeal. Stuart Alderoty, Ripple’s Chief Legal Officer, expressed disappointment but not surprise at the SEC’s decision to continue the legal battle. Alderoty criticized the agency, labeling its actions as “litigation warfare” against the cryptocurrency industry, and reiterated that the court had already dismissed claims that Ripple acted recklessly. He also pointed out that the SEC’s case involved no allegations of fraud, no victims, and no financial losses related to XRP’s sale.
Ripple CEO Brad Garlinghouse echoed Alderoty’s sentiments, stating that the SEC’s relentless pursuit of this case had become an embarrassment for the regulatory body. He emphasized that despite the appeal, XRP’s status as a non-security remains “the law of the land,” and vowed to continue fighting for as long as necessary to uphold that decision.
“While we’ll fight in court for as long as we need, let’s be clear: XRP’s status as a non-security is the law of the land today – and that does not change even in the face of this misguided – and infuriating – appeal,” Garlinghouse said.
Legal Community Weighs In
The ongoing legal case has garnered significant attention not only from the cryptocurrency community but also from legal experts.
XRP Price Collapses 12% as SEC Strikes Back: Is Ripple in Danger?
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XRP Crashes 12%: SEC’s Shocking Appeal Sends Ripple Investors into Panic Mode
XRP holders are in disarray as the SEC’s latest appeal causes a steep drop in the token’s value. Will Ripple survive this relentless attack from regulators, or is the worst yet to come? Dive into the details of the legal war that’s creating waves in the crypto space.
XRP Price Plummets: Will Ripple Survive the SEC’s New Assault?
Just as XRP was stabilizing, the SEC’s surprise appeal has triggered a 12% crash in its price. Can Ripple fight back and save XRP from further losses, or is this the beginning of a deeper decline? Find out what’s next in the high-stakes legal battle.