The US Securities and Exchange Commission (SEC) is appealing a court ruling regarding the XRP token, which could significantly impact Ripple and the cryptocurrency market. The appeal challenges Judge Analisa Torres' decision, which exempted $757 million in XRP sales on public exchanges from SEC jurisdiction, ruling they were not securities.
If upheld, this could limit the SEC's control over similar cryptocurrency exchanges, affecting the agency's authority over non-traditional financial products. However, the initial ruling also classified $728 million in XRP sales to institutional investors as securities, requiring compliance with securities laws.
Ripple's CEO, Brad Garlinghouse, criticized the SEC's move, labeling it as "misguided." He emphasized the established legal status of XRP as a non-security, arguing that the appeal harms the SEC's reputation more than it protects investors.
Following the SEC's appeal announcement, XRP’s market value fell by 10%, trading at $0.5390. The outcome of the appeal remains crucial for Ripple and its ongoing regulatory challenges.
