SEC Appeals Court Ruling on XRP Classification
- The SEC filed a brief to appeal a court decision that XRP is not a security when sold to retail investors.
- The SEC seeks to classify all XRP sales as unregistered securities offerings.
- Judge Analisa Torres previously ruled that XRP sales on exchanges were not securities, but those to institutional investors were.
- The SEC argues both institutional and retail sales meet the Howey test criteria for investment contracts.
- Ripple’s sales of XRP exceeded $2 billion, according to the SEC.
The SEC has filed an appeal in the US Court of Appeals for the 2nd Circuit, challenging a ruling that distinguished between XRP sales to retail and institutional investors. The regulator contends all sales should be classified as unregistered securities offerings, citing Ripple’s marketing efforts and transaction values.
