The US Securities and Exchange Commission (SEC) has decided to appeal a court ruling that classified XRP tokens as non-security, which impacted XRP’s market price negatively. This ruling's appeal could significantly modify the regulatory framework for cryptocurrencies.
Ripple CEO Brad Garlinghouse criticized the SEC’s decision to appeal, arguing that the court ruling already settled XRP's classification. He accused the SEC of misusing taxpayer funds through this litigation. Despite the appeal, the $125 million fine imposed on Ripple is pending as the appeal progresses.
This legal battle is part of a broader discussion regarding the classification of cryptocurrencies and their regulatory implications. The 2nd Circuit’s decision could potentially alter Ripple’s operations and set regulatory precedents for other cryptocurrencies.
Additionally, the SEC announced the forthcoming departure of Gurbir S. Grewal, Director of the Division of Enforcement, effective October 11, 2024. Sanjay Wadhwa and Sam Waldon will assume the roles of Acting Director and Acting Deputy Director respectively. During Grewal's leadership, the SEC issued over 100 enforcement actions against crypto entities, including major players like Binance and Coinbase.
