US SEC Officially Acknowledges XRP Is Non-Security in New Court Filing
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The SEC has affirmed that digital assets, including XRP, are not securities.
The crypto community reacts to the SEC’s recognition of XRP not being securities.
Meanwhile, the SEC has initiated an interlocutory appeal of the court’s ruling.
In a significant turn of events, the United States Securities and Exchange Commission (SEC) has publicly affirmed the nonsecurity status of digital assets, including XRP. This announcement comes as part of the regulatory body’s motion to appeal the Ripple victory ruling.
The SEC stated in the newly filed motion:
“The SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value.”
The SEC’s recognition that digital assets are not inherently securities has elicited enthusiastic responses from the crypto community, particularly the XRP armies.
In a tweet, attorney John Deaton noted that the SEC’s acknowledgment can be attributed to the overwhelming support of over 75,000 XRP holders who joined the ongoing lawsuit. Deaton emphasized:
“We fought to have the judge actually [write] that the token itself is not the security. In fact, it was the first section in our argument in the Brief.”
I have to say there is no doubt 75K #XRPHolders are a major reason the SEC is conceding this issue. We fought to have the judge actually ✍️ that the token itself is not the security. In fact, it was the first section in our argument in the Brief. https://t.co/ann7Hah7K3 pic.twitter.com/yqodFQ1eAV — John E Deaton (@JohnEDeaton1) August 18, 2023
SEC Initiates Interlocutory Appeal
Meanwhile, the U.S. regulator took a pivotal step in its legal dispute with Ripple Labs. The agency submitted a formal request to the U.S. District Court in the Southern District of New York (SDNY) to certify its interlocutory appeal.
Interestingly, the SEC’s request closely followed a decision made by Judge Analisa Torres, overseeing the case. The judge authorized the agency’s motion for leave for an interlocutory appeal.
In its filing, the SEC intended to concentrate on Judge Torres’ ruling concerning Ripple’s programmatic sales of XRP and other distributions. Recall that on July 13, the U.S. court upheld that neither of these transactions qualifies as securities.