SEC Files Opening Brief in its Appeal Over XRP
To appeal a federal court judge’s ruling in its case against Ripple Labs, the US Securities and Exchange Commission has filed its arguments, which have been criticized by the company’s chief legal officer.
The SEC argued in a filing to the Second Circuit Appeals Court that the New York District Court was mistaken in ruling that XRP sold to retail investors did not qualify as an unregistered securities offering.
The commission is seeking to have this ruling overturned and for sales of XRP to be classified as unregistered securities, hoping to also issue an updated judgment to Ripple if successful.
Additionally, the SEC contends that XRP given as employee compensation and in business deals should also be considered securities, contrary to the District Court’s ruling. This appeal follows the SEC’s lawsuit against Ripple in December 2020, which the agency partially lost.
