The U.S. Securities and Exchange Commission (SEC) continues its legal battle against Ripple Labs, filing an appeal with the Second Circuit Court. The regulator aims to overturn the ruling by Judge Analisa Torres in July 2023 that retail XRP sales on exchanges do not violate securities law.
The SEC asserts that any XRP transactions, including employee compensation and partner deals, count as “investment contracts” under the Howey Test. In contrast to retail sales, Judge Torres previously found institutional token sales unlawful, which led Ripple to pay a $125 million fine.
Ripple’s Response to the Regulator
Ripple’s Chief Legal Officer Stuart Alderoty called the SEC’s appeal a “rehash of already failed arguments.” CEO Brad Garlinghouse likewise criticized the regulator, noting that the SEC’s attempts to prove its stance appear less convincing than before.
XRP Rises Amid Ongoing Disputes
Despite regulatory pressure, XRP has risen 10% in 24 hours, surpassing $3 for the first time in five years. At the time of writing, the token trades at $3.07, briefly reaching $3.18 over the last 24 hours. It needs an additional 19.58% to hit its all-time high of $3.84.
