SEC to Appeal Ripple Ruling: XRP Price Impact at Stake?

• The US SEC is planning to file an appeal against the Ripple Labs case ruling, arguing that the decision conflicts with existing securities laws.
• The central point of contention lies in the judge’s conclusion that sales of Ripple’s XRP token directly to institutional investors violated the SEC’s rules, while offerings to retail investors on exchanges did not.
• Terraform Labs and Do Kwon have filed a motion to dismiss their own SEC lawsuit, arguing that the Ripple case sets a precedent supporting their claim.

SEC Appeals Ripple Ruling

The US Securities and Exchange Commission (SEC) has taken action to appeal significant portions of the recent ruling in the Ripple Labs case, highlighting concerns that the decision is at odds with existing securities laws.

Conflict With Howey Test

The central point of contention lies in the judge’s conclusion that sales of Ripple’s XRP token directly to institutional investors violated the SEC’s rules, while offerings to retail investors on exchanges did not. The SEC asserts that this distinction is fundamentally flawed and conflicts with the well-established Howey Test , which has been used for decades to determine whether certain assets qualify as securities. By turning the Howey Test into a subjective standard, the SEC believes that the ruling misinterprets the essential criteria for defining securities.

Possible Impact On Token Litigations

In response to the Ripple ruling, Terraform Labs and Do Kwon have filed a motion to dismiss their own SEC lawsuit, arguing that