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One of the most closely followed cases by cryptocurrency investors is the Ripple battle. There has been a new development. We mentioned earlier that there would be new developments in August and that the approval or rejection related to the appeal could be announced in September.
Current Status of the Ripple Lawsuit
In the application made by Ripple’s legal team to the US District Court, they stated that the dissatisfaction of the SEC with the judge’s decision that the XRP token was not classified as a security for individual investors was based on the “discontent.” Lawyers said that there were no exceptional circumstances necessary for temporary appeal in the case and called on the judge to reject or postpone the appeal request.
“Even after the Individual Defendants identified this omission in the pre-filing letters, the SEC made no attempt to meet a standard for postponement. Individual Defendants are writing separately to oppose the SEC’s request. Ripple is joining this opposition.”
In August, the SEC took action to appeal and halt a court decision in July where Judge Analisa Torres ruled that XRP was not largely considered a security under SEC guidelines.
Although the regulatory agency believes that current laws will be applicable to find Ripple guilty, the judge objected to the attempt to adapt this new technology to laws from the 1940s.
SEC and Cryptocurrencies
If, at the end of all these court proceedings, the SEC can obtain approval for the flexible application of the Howey test in the crypto field, cryptocurrencies will not have a bright future. When the Howey test is applied flexibly, most altcoins will fall under the jurisdiction of the SEC. The 21st Century Cures Act, which recognizes more new coins to the CFTC, will resolve the problem fundamentally if it goes before Biden before the year ends.
Ripple CEO Brad Garlinghouse said in a recent statement:
“It is sad that many people in the US crypto community have to resort to the legal process to prove that the SEC has gotten out of control and constantly misconstrues facts and laws.”
This year, the SEC targeted many altcoins with lawsuits against Binance and Coinbase exchanges. Last Tuesday, it suffered its second major defeat against Grayscale. The court decisions regarding XRP and GBTC have dealt two heavy blows to the SEC within two months.
