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Is XRP in Trouble Again? SEC Signals Appeal in Ripple Case

Summary:
The legal war between the United States Securities and Exchange Commission and Ripple Labs appears to be far from over. While the latter managed a partial win following a recent court ruling, the Commission doesn’t seem to be backing down just yet. According to a recent report by Bloomberg, the United States Securities and Exchange Commission has asked a federal judge to ignore key parts of the recent ruling in the agency’s case with Ripple Labs. The watchdog argues that the decision fails to reflect existing securities regulations. In a fresh filing in another case – against Terraform Labs and former Terra-Luna CEO Do Kwon, the regulator says: Ripple creates an artificial distinction between the expectations of sophisticated institutional and retail investors, improperly

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The legal war between the United States Securities and Exchange Commission and Ripple Labs appears to be far from over.

While the latter managed a partial win following a recent court ruling, the Commission doesn’t seem to be backing down just yet.

  • According to a recent report by Bloomberg, the United States Securities and Exchange Commission has asked a federal judge to ignore key parts of the recent ruling in the agency’s case with Ripple Labs.
  • The watchdog argues that the decision fails to reflect existing securities regulations.
  • In a fresh filing in another case – against Terraform Labs and former Terra-Luna CEO Do Kwon, the regulator 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.

  • Recall that 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 the news broke out and has doubled since.
  • But is XRP in trouble again? With the SEC signaling a potential appeal, the case might be headed to trial and the legal battle might drag on, putting additional pressure on the cryptocurrency.

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