Focus shifts to Ripple’s sales and executive transactions.
Ripple’s legal team reassures that XRP’s non-security status remains intact.
Legal process could extend until mid-2025 as briefs are prepared.
SEC Targets Ripple Sales, But XRP’s Non-Security Status Holds
The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs took a new turn as the SEC filed an appeal. However, the appeal notably does not challenge the court’s earlier decision that XRP, Ripple’s native cryptocurrency, is not classified as a security. This is a significant detail for the broader cryptocurrency market, as the security status of digital assets like XRP has been a contentious issue.
The SEC’s appeal now pivots to focus on Ripple’s XRP sales on secondary markets, particularly on exchanges, as well as personal sales by Ripple’s top executives, CEO Brad Garlinghouse and Executive Chairman Chris Larsen. Additionally, the SEC is questioning XRP distributions that were made for non-cash consideration, raising issues regarding Ripple’s broader financial dealings.
Ripple’s Legal Team Confident in XRP Ruling
Ripple’s Chief Legal Officer, Stuart Alderoty, was quick to clarify the scope of the SEC’s appeal. He emphasized that the ruling on XRP’s non-security status remains intact and unchallenged. This has provided some reassurance to the Ripple community, as fears of a reversal of the landmark ruling have been temporarily quelled.
Despite the ongoing legal wrangling, the case is expected to drag on until at least July 2025, as both sides are set to file briefs in the coming months. This prolongs the uncertainty surrounding Ripple’s operations and the broader crypto landscape, although the key takeaway for now is that XRP’s non-security classification remains in place.
