The U.S. Securities and Exchange Commission (SEC) has requested an interlocutory appeal in the ongoing Ripple Labs lawsuit in order to halt further proceedings until the appeal is resolved. This comes after a judge ruled in July that Ripple’s cryptocurrency, XRP, does not qualify as a security under SEC guidelines. However, the SEC disagrees with this ruling and argues that there are significant legal issues with the application of the Howey Test to determine the classification of crypto assets. This appeal contradicts previous statements from SEC Chairman Gary Gensler, who has said that most cryptocurrencies should be classified as securities. Ripple Labs and other industry figures have criticized the SEC’s appeal, questioning the need for it if the rules are clear. The outcome of this case could have implications for how cryptocurrencies are classified and regulated in the United States.
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