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The announcement by the US Securities and Exchange Commission (SEC) that it will appeal the summary judgment in the case against Ripple, a blockchain company, has caused a drop in the price of XRP. The federal regulatory agency, while describing the decision as incorrect, stated that it will appeal the judgment after conducting the necessary evaluations.
Do Kwon’s Move Spurred the SEC into Action
In the case brought by the SEC against Ripple, the court ruled on July 13, 2023, that the sale of XRP to individual investors was not a securities sale, but only the sale to institutions was. Ripple declared a partial victory against the SEC. Following the court’s summary judgment, the SEC signaled that it would explore various options to review the decision.
The official statement that the summary judgment will be appealed came to light when Do Kwon, co-founder of Terraform Labs, attempted to use the XRP decision of the court in the fraud case filed against him as a precedent.
Referring to Judge Torres’ ruling that XRP sales were not securities, Kwon attempted to block the SEC’s accusations against him. In response to Kwon’s attempt, the SEC submitted a petition stating that it should not be taken into account because it is still reviewing the court’s decision in the Terraform Labs case. The federal regulatory agency clearly stated that it disagreed with the parts of the Ripple decision used by Kwon and considered them as incorrect rulings. The SEC stated that its staff is evaluating various options for further review.
All Eyes on the Appeal Decision for XRP and the Crypto Market
The SEC’s move to appeal the summary judgment in the case against Ripple has raised concerns in the crypto world as it could have implications for the XRP market. It has been observed that the price of XRP has dropped. Traders and investors seem to be cautious, expecting the SEC to appeal the court’s decision.
It is not yet clear how long it will take for the court to decide whether to accept the institution’s appeal. The outcome of the appeal will be significant for both the XRP market and the rest of the crypto market.
