The U.S. Securities and Exchange Commission (SEC) has filed an appeal in its case against Ripple Labs, seeking to overturn a 2023 ruling that XRP sales were not securities. Judge Analisa Torres previously determined that XRP didn’t meet the SEC’s Howey test criteria, which defines securities, making secondary XRP sales non-securities transactions.
However, Torres ruled that early sales to institutional investors by Ripple’s founders were considered securities due to the manner of sale. This verdict was seen as a significant win for Ripple and the wider crypto industry.
On the same day the appeal was filed, SEC enforcement chief Gubir Grewal announced his resignation, leaving Sanjay Wadhwa as interim director. Meanwhile, Bitwise has shown growing institutional interest in XRP by filing for an XRP ETF trust in Delaware, though SEC approval may face delays due to the ongoing legal battle.
This legal appeal is likely to extend the uncertainty surrounding XRP and the crypto market’s regulatory future.