The Securities and Exchange Commission (SEC) has thrown a wrench into the cryptocurrency market by appealing a pivotal ruling in the Ripple (XRP-USD) lawsuit. According to the SEC’s notice filed on October 2, the agency aims to overturn a decision by Judge Analisa Torres, which ruled that secondary sales of Ripple’s XRP token do not classify as securities sales. This development has sent ripples of uncertainty throughout the industry, prompting both concern and speculation, especially as the Cointelegraph notes, “the initial filing in Delaware is not an SEC filing, and due to the recent legal appeal, SEC approval for the XRP trust may be delayed.”
Ripple’s Court Victory Faces New Challenges
Judge Torres determined that XRP isn’t a security by itself because it doesn’t meet all the criteria of the SEC’s Howey test. This landmark ruling was seen as a win for Ripple Labs and a broader relief for the crypto sector, which has faced increasing scrutiny. However, Torres also clarified that initial sales of XRP from Ripple’s founders to institutional investors did meet the criteria for securities, which could complicate matters. “This ruling was hailed as a significant victory for Ripple Labs and the broader cryptocurrency industry at the time,” noted an industry expert.
Enforcement Chief Steps Down Amid Controversy
As if this wasn’t enough to rattle the crypto community, the SEC announced the resignation of its Chief Enforcement Officer, Gubir Grewal, effective October 11. Grewal has been criticized for his aggressive stance against the crypto sector, suggesting over 100 enforcement actions during his tenure. The agency has yet to appoint a permanent replacement, although Sanjay Wadhwa will serve as the interim chief. This change in leadership just adds to the uncertainty as the SEC figures out how to handle its shifting relationship with cryptocurrencies.
Growing Interest in XRP Despite Legal Hurdles
Despite the SEC’s legal challenges, interest in XRP appears to be on the rise. Bitwise recently filed for an XRP ETF trust in Delaware, aiming to tap into institutional investment. While this could signify growing confidence in XRP’s future, the ongoing legal drama could delay SEC approval for the trust. As Cointelegraph reported, “The initial filing in Delaware is not an SEC filing, and due to the recent legal appeal, SEC approval for the XRP trust may be delayed.”
What Is the Price of XRP Right Now?
Amid these developments, XRP’s price has taken a noticeable hit, falling 17% over the past five days to sit at $0.5169. This decline reflects the market’s reaction to the SEC’s appeal and the increased uncertainty surrounding Ripple’s legal battles.
