Ripple Is a Security, SEC Requests

Ripple (XRP) dropped by 11% on Thursday following an unexpected move by the US Securities and Exchange Commission (SEC) to appeal a decision from last year.

This is the latest major news out of the court case involving Ripple and the US SEC. In 2023, the court ruled that XRP is not a security when it is being sold on exchanges to retail investors, and the SEC appealed that decision on Wednesday this week.

 

As a result, the price of XRP fell to $0.52. It has been about two months since the coin has dipped that low. XRP is considered an unregistered security, but only when it is being sold to institutional investors.

Ripple is now looking to take action against the appeal by filing a cross appeal, but at press time, they had not decided whether to go through with that or not. If the crypt token is classified as a security, then it would seriously hinder the company’s ability to sell it in the same way other crypto tokens are sold.

The company issue d a statement saying that XRP is not a security and that this is currently the “law of the land.” The appeal does not change that, but it could if it is accepted. The result would be a delisting from many exchanges and a reclassification for the embattled token. It would be devastating to investors and exchanges that trade the coin right now. Of course, the move would be devastating to Ripple as well.

What to Know about Ripple

Ripple’s XRP is the fifth highest ranked crypto coin right now, and the lengthy court case has held it back from growth this year, say analysts. Ripple uses the coin on its open source XRP Ledger so that clients can make payments internationally. It works very smoothly in conjunction with USD (USDC) and Tether (USDT) coins.

Ripple is in danger right now, but many cryptocurrency market insiders say that Ripple will eventually win the case. A partial win has already happened. Instead of the $2 billion that the SEC demanded for payment in fines for violation of a variety of laws, Ripple will only need to pay $125 million. That was the presiding judge’s ruling in August as the case continued to drag on. Before that, Judge Torres ruled that Ripple tokens were securities only in some cases. That is the ruling that these seeks to overturn, but they will have to provide compelling evidence for that to happen.

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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