The U.S. Securities and Exchange Commission (SEC) is not appealing District Judge Analisa Torres’ ruling that XRP is not a security, a lawyer has explained. The securities regulator is appealing “programmatic and individual sales issues,” he clarified, adding that “If the SEC wins the appeal on sales, then Ripple couldn’t use exchanges to facilitate sales.”
SEC Not Disputing Whether XRP Is a Security
The U.S. Securities and Exchange Commission (SEC) has informed District Judge Analisa Torres that it intends to appeal her ruling in the Ripple case. However, the securities regulator is not appealing the non-security status of XRP, Jeremy Hogan, partner at law firm Hogan & Hogan, explained on Twitter Wednesday.
“The SEC continues making questionable decisions, requesting an interlocutory appeal,” Hogan tweeted, emphasizing:
Note that it is NOT appealing whether XRP itself is a security — just its losses on the programmatic and individual sales issues.
In another tweet, he clarified that challenging programmatic sales and challenging the non-security status of XRP are “two separate issues.”
While reiterating Judge Torres’ ruling that “XRP is not a security,” Hogan explained: “If the SEC wins the appeal on sales, then Ripple couldn’t use exchanges to facilitate sales.” The lawyer added that the big question is whether crypto exchanges would keep XRP listed. “I think yes, as long as they can verify the sales are not being made by Ripple,” he stated.
Following Judge Torres’ ruling on the Ripple case last month, SEC Chairman Gary Gensler said the securities regulator is “disappointed” with what the judge said about retail investors. Nonetheless, he affirmed that the SEC will continue its enforcement actions against cryptocurrency companies that fail to comply with regulations. The SEC chief believes that crypto is “a highly speculative asset class” and a field that is “rife with fraud.”
In a filing for its lawsuit against Terraform Labs and Do Kwon, the SEC claimed that some decisions in the Ripple court ruling on XRP were “wrongly decided.” Moreover, District Judge Jed S. Rakoff disagreed with the approach taken by Judge Torres in the SEC v. Ripple case concerning XRP.