SEC Appeals Ruling Limiting Crypto Oversight
SUMBERPULSA.COM - New York, October 2, 2024 – The U.S. Securities and Exchange Commission (SEC) has announced its intention to appeal a court decision that curtailed its regulatory authority over cryptocurrency markets.
The SEC is seeking a review of a July 2023 ruling by U.S. District Judge Analisa Torres, which determined that XRP tokens sold by Ripple Labs on public exchanges did not qualify as securities. This decision exempted these sales from investor protection laws enforced by the SEC.
A favorable ruling for the SEC on appeal could significantly impact its ability to regulate cryptocurrency exchanges like Coinbase and other entities involved in the sale or trading of newer, non-traditional financial products.
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While Judge Torres' ruling provided a partial victory for the SEC, finding that another portion of XRP sales to institutional investors should have complied with securities laws, the regulator is seeking to overturn the broader determination regarding XRP's status as a security.
Ripple, the company behind XRP, has also indicated its intention to appeal certain aspects of the ruling that it deems unfavorable. Ripple CEO Brad Garlinghouse expressed disappointment with the SEC's decision to appeal, calling it "misguided" and "infuriating" but not unexpected. He emphasized that the current legal landscape recognizes XRP as a non-security.
