The U.S. Securities and Exchange Commission (SEC) is seeking an appeal to argue whether Ripple violated securities law by making XRP available to retail investors on crypto exchanges. The SEC filed a response on Friday to a Ripple memo which argued the contrary, stating that the issues raised have industry-wide significance.
Last week, Ripple claimed that the SEC hadn't provided a sufficient argument to warrant an appeal. However, the SEC's recent filing strongly refuted this, emphasizing the importance of these issues for the entire crypto industry.
An ex-SEC official and specialist in securities law enforcement weighed in on the SEC's recent appeal, stating that it is unlikely to succeed given the case's significance for the entire crypto market. The expert, Marc Fagel, shared his views on X (formerly Twitter), responding to a question about the likelihood of the courts granting the SEC's interlocutory appeal. Fagel noted that while the case is important and involves novel areas of law, the specific requirements for interlocutory appeal are hard to meet.
This ongoing legal battle between Ripple and the SEC has been closely watched by the XRP community, who are speculating on various outcomes. Some believe that Ripple will announce a full settlement with the SEC during a victory party scheduled for September 29th, while others speculate about a possible IPO announcement.
The SEC has stated that most cryptocurrencies are securities, arguing that the existing framework is sufficient to regulate the crypto market. This view has been challenged by market leaders who argue that the SEC has been regulating through enforcement rather than clear guidelines.
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