- Ripple’s Chief Executive Officer, Brad Garlinghouse, argues the SEC overlooks a vital court ruling.
- The SEC is appealing a decision that states XRP is not a monetary instrument.
- Bitnomial is also taking action against the SEC over its claims on XRP options.
The company's founder has accused the U.S. Securities and Exchange Commission of overlooking a court conclusion on the token's classification. This verdict determined that XRP is not a security and raised questions about the commission's authority. Consequently, industry stakeholders are closely monitoring these developments as legal disputes escalate.
Legal Differences Escalate
Recently, the SEC's Notice of Appeal has sparked discussion. This Notice aims to challenge the summary judgment and final ruling in the SEC vs. Ripple case. This high-profile legal battle has persisted for over four years and attracted considerable attention. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not meet the third prong of the Howey Test. This test determines whether an asset qualifies as a security.
In response to the SEC's complaint, Ripple plans to file a cross-appeal. The SEC contests a decision that includes a $125 million fine against Ripple for its institutional the coin's purchase. The organisation's Chief Legal Officer, Stuart Alderoty, stated that the SEC's inquiry does not affect the rules of clarity. Furthermore, this response has led to a positive shift in sentiment among the currency holders.
Bitnomial's Legal Action
Additionally, Bitnomial Inc. has filed a lawsuit against the SEC. This lawsuit highlights ongoing regulatory challenges. It stems from the SEC's efforts to assert jurisdiction over digital asset derivatives. Bitnomial intends to launch physically delivered XRP Futures after receiving self-certification from the Commodity Futures Trading Commission on August 9, 2024. However, the SEC later contacted Bitnomial and claimed jurisdiction over the XRP US Dollar Futures contract.
Bitnomial argues that the SEC's claims are unwarranted. The exchange insists that these offerings should be classified as commodity derivatives rather than securities. Support for this position comes from the recent decision by the Southern District of New York. This ruling confirmed that XRP is not inherently a security and was not classified as such in secondary market trades.
Implications for Cryptocurrency Regulation
As these legal battles unfold, the cryptocurrency community watches closely. The SEC’s pursuit of regulatory authority raises important questions about future cryptocurrency regulations in the United States. The outcomes could set serious precedents for Ripple Bitnomial and the broader digital asset ecosystem. Industry participants await clarity as these legal disputes continue to evolve.
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