The US Securities and Exchange Commission (SEC) has confirmed that digital assets, including XRP, are not securities. The crypto community is reacting to the SEC’s admission that the altcoin project is not a security. Meanwhile, the SEC has launched an interim appeal against the court’s decision.
The SEC has officially admitted that Ripple is not a security either!
The U.S. Securities and Exchange Commission (SEC) has admitted that the assets underlying its lawsuit against Ripple and Terraform Labs do not constitute securities. However, she is appealing the judge’s decision in her case against Ripple as it could affect her other cases. In its interim appeal, the regulator stated that its concerns all this time were whether the XRP token is a security in its own right. In the documents on file, the SEC asserts:
The SEC does not claim here or on Terraform that the underlying asset of these investment contracts is necessarily a security. Furthermore, the SEC does not seek an appeal review of any position regarding the fact that the underlying assets here are nothing more than computer code with no inherent value.
The statement got the altcoin community excited
This statement from the SEC received enthusiastic reactions from the crypto community, especially the XRP Army. Attorney John Deaton stated in a post that the SEC’s acceptance can be attributed to the overwhelming support of the more than 75,000 XRP holders involved in the ongoing litigation. Deaton emphasized:
We struggled to have the judge write that the token itself is not a security. Actually that was the first part of our argument in the file.
I have to say there is no doubt 75K #XRPHolders are a major reason the SEC is conceding this issue. We fought to have the judge actually ✍️ that the token itself is not the security. In fact, it was the first section in our argument in the Brief. https://t.co/ann7Hah7K3 pic.twitter.com/yqodFQ1eAV
— John E Deaton (@JohnEDeaton1) August 18, 2023
So what does the regulator want?
While the SEC does not question the status of cryptocurrencies, it does request the court to issue a ruling on interim appeal. It also claims to have met all the requirements for interim appeal. According to the regulator, the court decision in the Ripple case contains controlling questions of law. He states that the decision regarding the altcoin project may affect several other SEC lawsuits, including those against Coinbase and Binance. It also claims to be an important ground for disagreements. He claims he specifically points to the verdict in the Terraform Labs case. Therefore, the SEC believes that other fair-minded courts may make different decisions regarding Programmatic Sales and other distributions.
The SEC, in its third argument as to why the appeal decision should be made, stated that this would advance the resolution of the case. Failure to appeal now will only delay a possible appeal until after the final decision. In the meantime, as you follow on Kriptokoin.com, the SEC also requests the suspension of legal remedies and pre-trial proceedings until the appeal is decided. Ripple has until September 1 to respond to this request.
Altcoin price performance
The XRP community is focusing on SEC acceptance rather than a potential appeal. Crypto attorney John Deaton states that asset holders are responsible for the regulator’s prerogative. Because he says amicus summaries asked the judge to include that in the decision.
XRP price performanceHowever, the financial watchdog’s acceptance did not seriously affect altcoin price performance. According to the latest data, XRP has increased by 2% in 24 hours. XRP was trading at $0.5179 at press time. Meanwhile, last week, the sudden market movement wiped out nearly all of XRP’s post-SEC victory.
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