The U.S. Securities and Exchange Commission (SEC) has formally appealed the recent district court ruling in its lawsuit against Ripple Labs. The court had previously ruled that certain XRP sales to retail investors did not violate securities laws.
The SEC's appeal challenges the court's distinction between institutional and retail investors, arguing that it contradicts the objective investor standard and undermines the principle of equal protection for all investors under federal securities laws.
The agency contends that the court erred in finding that retail investors did not reasonably expect profits from Ripple's efforts, as they purchased XRP through trading platforms without direct knowledge of the seller.
Potential Shift in Crypto Regulation
The appeal comes amidst speculation about a potential shift in the SEC's approach to crypto regulation under the incoming administration. Reports suggest a possible pause on enforcement actions and a move towards a more collaborative approach with the industry.
The departure of current SEC Chair Gary Gensler next week is expected to usher in a period of increased clarity and potentially more favorable regulatory conditions for the cryptocurrency sector.
January 2025, Cryptoniteuae