- The SEC’s appeal in the Ripple case ultimately benefits XRP holders.
- The regulator’s submission targeted the company and its principal figures, not the designation of the token itself.
On August 7, Judge Analisa Torres of the Southern District of New York delivered a ruling in the case of the US Securities and Exchange Commission (SEC) versus Ripple. Just when many believed the dispute was over, the regulator filed a Notice of Appeal to challenge the ruling and submitted its arguments just before the deadline.
Even though this news was disappointing for Ripple, many in the crypto community viewed the nature of the appeal positively for XRP.
SEC’s Arguments
A primary argument from the SEC was regarding Ripple’s sale of XRP. The agency contended that the company’s offering of the crypto asset on exchanges constituted an unregistered sale of securities.
The SEC also implicated Ripple CEO Brad Garlinghouse and co-founder Chris Larsen in the appeal, claiming they orchestrated unlawful activities. Their personal transactions involving XRP in the market were also questioned.
Furthermore, the regulator highlighted that the distribution of the token by company executives to employees breached certain sections of US securities laws.
Why This is Positive for XRP
This indicates that the focus of the legal action is primarily on the company and its key figures’ actions, without challenging the status of XRP in any form, minimizing potential issues for token holders.
It is important to recognize that XRP operates on the XRP Ledger (XRPL), which was designed to support its operational functions.
Nonetheless, XRP is closely linked with Ripple, as the company has been utilizing the asset to facilitate transactions on its payment platform tailored for financial institutions, businesses, and organizations.
Amid this crucial distinction, analysts argue that the ongoing court saga between the SEC and Ripple is significantly impeding XRP’s market value, suggesting it is undervalued for a token with such great potential in cross-border transactions.
The decline in XRP’s price following the SEC’s filing highlighted its strong correlation with Ripple-related events. Therefore, a swift resolution by the appellate court in the SEC v. Ripple case remains in the best interest of XRP holders.
