The U.S. Securities and Exchange Commission (SEC) has filed its opening brief in the ongoing Ripple Labs case, pushing to classify XRP (XRP-USD) sales to retail investors as unregistered securities. This comes after a 2023 federal ruling that partially favored Ripple, declaring XRP sales to retail investors weren’t securities. Ripple, however, is not backing down.
SEC Revives Old Arguments
In its Jan. 15 filing, the SEC argued that XRP buyers anticipated profits due to Ripple’s promotional efforts, making the token an investment contract under the Howey Test. Ripple’s Chief Legal Officer Stuart Alderoty dismissed this as a “rehash of already failed arguments.”
Ripple Fires Back
Ripple CEO Brad Garlinghouse criticized the SEC for “doing the same thing over and over and expecting different results.” Analysts predict the SEC’s stance may lose traction under a pro-crypto Trump administration, potentially freezing cases without fraud allegations.
Despite the filing, XRP surged 10% in 24 hours, aligning with broader crypto market gains. As Ripple prepares its counterarguments, the case could take months to resolve.
At the time of writing, XRP is sitting at $3.2739.
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