In a remarkable development, the US SEC has publicly declared that digital assets, such as XRP, are not to be treated as securities.
This significant announcement emerged within the context of the SEC’s motion to appeal a recent court ruling favorable to Ripple Labs. The regulatory body’s statement has ignited enthusiasm within the cryptocurrency community, particularly among XRP supporters.
The SEC’s recent filing carries substantial implications as it acknowledges that digital assets are fundamentally distinct from securities. In the motion, the SEC highlighted:
“The SEC 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.”
This recognition has garnered enthusiastic reactions from the crypto community, especially from the fervent XRP supporters.
Legal analyst John Deaton attributed the SEC’s acknowledgment to the collective efforts of more than 75,000 XRP holders who actively participated in an ongoing lawsuit.
Deaton emphasized that their legal strategy successfully led to the assertion that the XRP token itself is not to be considered a security. Notably, this assertion was placed at the forefront of their legal arguments in the Brief.
In a parallel development, the SEC took a pivotal stride in its ongoing legal clash with Ripple Labs. The regulatory body formally petitioned the U.S. District Court in the Southern District of New York (SDNY) to authorize its interlocutory appeal.
This move followed a noteworthy decision by Judge Analisa Torres, who presides over the case. Judge Torres had previously granted the SEC’s request for leave to initiate an interlocutory appeal.
The SEC’s request for an interlocutory appeal is chiefly centered on Judge Torres’ ruling regarding Ripple’s programmatic sales of XRP and other distribution methods.
Notably, the U.S. court, in a ruling on July 13, upheld that these specific transactions do not qualify as securities.
As the legal saga unfolds, Ripple Labs is anticipated to provide its response to the SEC’s motion by September 1. This impending response is poised to shed light on Ripple’s perspective on the SEC’s interlocutory appeal and its overall implications.