A request for expedited appeal in the Ripple XRP lawsuit by the US Securities and Exchange Commission (SEC) appears to have created a misconception in the crypto market. Federal regulatory agency requested US SEC for an immediate appeal in response to the recent Summary Judgment delivered by Judge Analisa Torres. Many media publications and investors misunderstood it for the SEC’s challenge to XRP’s status “not a security” as per recent XRP ruling.
XRP – Security Asset Or Not?
Earlier, CoinGape reported the US SEC’s filing of motion for leave to file an interlocutory appeal in the lawsuit against Ripple, which dates back to the last quarter of 2020. In this context, CryptoLaw, a firm linked to popular attorney John Deaton, clarified the SEC’s position in the filing, as against the speculation that the token’s existing status as not being a security for retail sales.
What Was Today’s Filing About
The US agency has clearly mentioned in the latest filing that it “Does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value.” Instead, the agency sought ” An immediate appeal of two rulings.” While one ruling was about XRP buyers not expecting profits out of the token investment, the other ruling is that investment in the token was ‘legally insufficient’ to constitute an “investment of money” as per the Howey Test.
Hey @ChrisDolmetsch – this story is false on very important facts you got wrong. Nothing in this brief is related to the XRP token not being a security. It is entirely about the CHANCE to file an expedited appeal about specific OFFERS AND SALES by the DEFENDANTS of XRP. Not the… https://t.co/V57OydsyHY
— CryptoLaw (@CryptoLawUS) August 18, 2023
In short, the SEC argued before the US District Court of the Southern District Court of New York that preponement of the appeal could effectively advance the final termination of the Summary Judgment.
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