SEC Tags XRP A Security in Lawsuit Against Ripple

(%)
MARKETS TREND

The Securities and Exchange Commission formally appealed its decision to classify cryptocurrency XRP as a security in its ongoing lawsuit against Ripple. The SEC argued against the earlier decision in favor of Ripple in a brief filed on Wednesday.

Β 

BrokerReviewRegulatorsMin DepositWebsite
πŸ₯‡Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
πŸ₯ˆRead ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
πŸ₯‰Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

According to the District Court for the Southern District, some XRP sales to individual investors were lawful under securities regulations.

The district court’s division between institutional and retail investors is contested in the appeal.

The financial watchdog contended that the district court’s differentiation between institutional and retail investors’ expectations is incompatible with the Howey test’s objective investor standard.

They also said it violates a core tenet of federal securities laws, which states that less experienced investors should be protected equally with more experienced ones.

The agency went on to say, β€œThe district court incorrectly concluded that retail investors did not have that same expectation because they bought XRP through cryptocurrency asset trading platforms and didn’t know if the seller was Ripple, a Ripple affiliate, or someone else.”. the SEC claims that all sales of XRP are unregistered securities. Should they prevail, the matter will return to the district court in an attempt to overturn the court’s decision in favor of Ripple.

There are rumors that the Trump administration may change its position on crypto regulation amid this legal tumult. According to reports, there may be a pause in enforcement actions, which could result in speedier settlements and a move away from β€œregulation by enforcement.”.

Gary Gensler, the current secretary chair, is scheduled to retire next week, so the new administration is anticipated to provide greater clarity and assistance to the cryptocurrency sector.

Β 

Β 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440