United

The United States Securities and Exchange Commission (SEC) filed a notice of appeal in the Ripple lawsuit on Oct. 2, seeking to overturn a ruling by Judge Analisa Torres.
Legal experts <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ripple-sec-stay-court-judgment-appeal" rel="null" target="null" text="null" title="null">anticipated the regulatory agency’s appeal</a> of the 2023 ruling, which established that secondary sales of Ripple’s XRP <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ripple-wins-case-against-sec-as-judge-rules-xrp-is-not-a-security" rel="null" target="null" text="null" title="null">did not constitute securities sales</a>.
Torres ruled that XRP was not a security in and of itself because the digital assets failed to satisfy all the conditions listed in the SEC’s Howey test to classify a financial asset as an investment contract.
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 <img alt="SEC files appeal in Ripple lawsuit" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924f3d-b6d8-7c83-8604-bb3b85c017ee">
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 SEC notice of appeal. Source:<a data-ct-non-breakable="null" href="https://x.com/FilanLaw/status/1841585433274204454" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/FilanLaw/status/1841585433274204454"> James K. Filan</a>.
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Because of this, Torres ruled that secondary sales cannot be labeled as unregistered securities sales. Still, Torres also ruled that early sales from the Ripple founders to institutional investors did constitute securities sales due to the manner in which they were conducted.
The ruling was hailed as a significant victory for Ripple Labs and the broader cryptocurrency industry at the time.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-enforcement-chief-gurbir-grewal-step-down" rel="null" target="null" text="null" title="null">SEC enforcement chief Grewal to step down</a>
<h2 id="securities-and-exchange-commission-enforcement-chief-steps-down">Securities and Exchange Commission enforcement chief steps down </h2>
On the same day that the SEC filed its notice of appeal in the Ripple lawsuit, the agency announced that its chief enforcement officer, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-enforcement-chief-gurbir-grewal-step-down" rel="null" target="null" text="null" title="null">Gubir Grewal, would step down</a> on Oct. 11.
Grewal has long been criticized for bringing draconian enforcement actions against the crypto industry, having suggested more than 100 separate enforcement actions during his tenure.
The government regulator has not formally replaced Grewal, though Sanjay Wadhwa — deputy director of the SEC’s enforcement division — has been chosen as the interim chief enforcement director while a permanent replacement is found.
<h3 id="bitwise-files-for-xrp-etf-trust">Bitwise files for XRP ETF trust</h3>
Interest in XRP may be growing within institutional circles. As Cointelegraph reported, Bitwise <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitwise-files-xrp-etf" rel="null" target="null" text="null" title="null">filed for an XRP ETF trust</a> in the state of Delaware on Sept. 30. The filing, which appeared on the state’s Division of Corporations website, indicates the company is exploring an XRP ETF.
Still, the initial filing in Delaware is not an SEC filing, and due to the recent legal appeal, SEC approval for the XRP trust may be delayed.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/pro-xrp-lawyer-john-deaton-10x-more-into-btc-4x-more-into-eth-hall-of-flame/" rel="null" target="null" text="null" title="null">Pro-XRP lawyer John Deaton ‘10x more into BTC, 4x more into ETH’: Hall of Flame</a>

SEC files appeal in Ripple lawsuit

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