The U.S. Securities and Exchange Commission (SEC) is planning to challenge a court ruling that stated XRP, the cryptocurrency associated with Ripple, may not be considered a security. The agency is seeking an interlocutory appeal to have the court’s decision reviewed while the case is ongoing. Despite this, XRP’s value has increased by 33% over the past month. The legal battle between Ripple and the SEC began in 2020 when the agency sued Ripple Labs for allegedly raising $1.3 billion through the unregistered sale of XRP. Legal experts note that the SEC’s appeal does not necessarily indicate a setback for Ripple. Some believe that XRP should not be classified as a security under the Howey Test. The SEC remains consistent in its stance but has expressed disappointment with certain aspects of the court’s ruling. There are divisions within the Southern District of New York regarding the case, highlighting significant differences of opinion.
AI Sentiment: Negative
