SEC Calls for Ripple Labs Appeal, Citing “Knotty Legal Problems”


This article has been republished with permission from Binance News.

According to Cointelegraph: The US Securities and Exchange Commission (SEC) has submitted a filing that urges the court to grant its motion to appeal a ruling in the Ripple Labs lawsuit, which declared XRP tokens not securities when sold to retail investors. The SEC argues that “knotty legal problems” concerning the court’s application of the Howey test warrant a review. On Sept. 8, the SEC requested the US District Court for the Southern District of New York to grant its motion for interlocutory appeal and “stay further proceedings until the resolution of that appeal.”

In the recent filing, the SEC claims that rulings on programmatic sales and other distributions present “legal questions” significant enough for its interlocutory appeal to be approved by the court. The SEC points to the legal gray area around the classification of certain crypto assets as investment contracts via the Howey test, citing proceedings from other cases with contradictory legal conclusions.

This stance is at odds with SEC Chair Gary Gensler’s previous statements, as he has repeatedly dismissed the need for new crypto regulations, insisting that the SEC’s guidelines sufficiently cover the entire crypto market.

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