SEC’s Ripple Appeal Doesn’t Target XRP Secondary Sales, Clarifies Attorney

Lawyer Invoice Morgan has clarified that the SEC’s newest name within the Ripple Labs case doesn’t apply to the sale of XRP on the secondary market by retail buyers. The decision focuses on Ripple’s programmatic gross sales and distribution of XRP, not particular person transactions on exchanges.

The clarification comes after the US SEC filed an enchantment on October 2, following Decide Analisa Torres’ ruling in July.

Confusion over the scope of the SEC enchantment

In a publish on The ruling solely utilized to Ripple’s programmatic gross sales of XRP, the place Ripple used automated processes to promote the cryptocurrency on the open market.

Morgan emphasised that secondary gross sales weren’t a part of the unique ruling and can’t be included within the enchantment. The SEC’s focus is on Ripple’s direct gross sales and potential fines associated to these gross sales.

This clarification is necessary as a result of some commentators imagine that secondary gross sales of XRP and Ripple’s programmatic gross sales are the identical.

XRP standing unchanged

Lawyer Jeremy Hogan additionally weighed in on the SEC’s resolution to enchantment, calling it a dangerous transfer for the regulator. Hogan believes the SEC’s probabilities of successful the enchantment are low as a result of the truth that Decide Torres’ ruling is closely fact-based.

Even when the SEC have been to succeed, Hogan believes it will end in extra monetary penalties for Ripple with out altering the authorized standing of XRP or its use by Ripple.

Hogan additional famous that the SEC’s enchantment is not going to problem the ruling that XRP itself isn’t a safety. The SEC “will NOT (and can’t) enchantment that XRP isn’t a safety,” he said.

In line with Hogan, the enchantment course of may final till late 2025 or early 2026, delaying a last decision.

The way forward for XRP ETF stays up within the air

This name comes at a time when asset supervisor Bitwise has filed for an XRP ETF with the SEC, aiming to supply institutional entry to XRP. Nevertheless, XRP fans stay unsure concerning the approval, particularly in mild of the SEC’s ongoing authorized battle with Ripple.
One X person expressed skepticism, stating that the continued enchantment to the SEC may delay the approval of an Nevertheless, one other person, Moon Lambo, disagreed, arguing that the enchantment doesn’t concern secondary market gross sales of XRP and wouldn’t have an effect on the approval of an XRP ETF.