Key Takeaways:
- The SEC filed an appeal to overturn Judge Torres’ 2023 ruling, which stated that secondary XRP sales were not securities.
- SEC enforcement chief Gubir Grewal announced his resignation, effective Oct. 11, after facing criticism for aggressive crypto enforcement.
- Bitwise filed for an XRP ETF trust in Delaware, signaling growing institutional interest in XRP despite pending legal uncertainties.
On October 2, 2024, the U.S. Securities and Exchange Commission (SEC) filed an appeal in the Ripple lawsuit, seeking to overturn a 2023 ruling by Judge Analisa Torres.
The original ruling determined that secondary sales of Ripple’s XRP did not qualify as securities, as XRP did not meet all the criteria under the SEC’s Howey test for securities classification.
#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: The @SECGov has filed a Notice of Appeal of Judge Torres’s Ruling. pic.twitter.com/j8bLIZQ5LT
— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 2, 2024
However, sales by Ripple’s founders to institutional investors were deemed securities transactions.
This decision was seen as a victory for Ripple Labs and the cryptocurrency industry.
On the same day, SEC Enforcement Chief Gurbir Grewal announced his resignation, effective October 11, after facing criticism for his strict enforcement approach toward the crypto sector.
Sanjay Wadhwa will serve as interim chief.
Meanwhile, Bitwise filed for an XRP trust in Delaware on September 30, signaling growing institutional interest in XRP, although legal uncertainties could delay approval of the trust.
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