Ripple’s Legal Battle Intensifies as SEC Maintains XRP is a Security

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Despite a court ruling declaring that XRP is not a security, the U.S. Securities and Exchange Commission (SEC) continues to assert otherwise. This ongoing stance has led to widespread speculation, especially as Ripple, the company behind XRP, has filed a cross-appeal in the legal battle with the SEC.

SEC Faces Pushback from Bitnomial Lawsuit

The SEC’s refusal to acknowledge the court’s ruling comes as Bitnomial, a leading crypto derivatives exchange, has launched a lawsuit. Bitnomial challenges the SEC’s classification of XRP futures as “security futures.” The exchange argues that XRP falls under the regulation of the Commodity Futures Trading Commission (CFTC) and claims the SEC is overstepping its authority.

The SEC’s persistence in calling XRP a security raises concerns among crypto enthusiasts, who question the agency’s motives. Ripple’s recent cross-appeal signals its intent to continue fighting the SEC’s claims, with paperwork submitted and the appeal fee paid to the U.S. Court of Appeals. This sets the stage for another intense round in the legal battle between Ripple and the SEC.

Ripple Supporters Push Back Against the SEC

Pro-XRP lawyer Bill Morgan criticized the SEC for relying on its earlier arguments from the Ripple case. He emphasized that the court had previously ruled that not all sales of XRP are classified as securities, a fact the SEC seems to overlook.

You have to read paragraph 34 to 36 of the complaint of Bitnominal against the SEC or you won’t believe me. SEC supported its assertion that XRP is a security by giving Bitnominal copies of its summary judgement briefs in SEC v Ripple but did not note that the court rejected the… https://t.co/pzJWaIdvVR pic.twitter.com/gIaD1j95qQ
— bill morgan (@Belisarius2020) October 11, 2024

Many in the crypto community view the SEC’s actions as an attempt to exert control over the digital asset space despite increasing opposition. Ripple’s cross-appeal shows its dedication to challenging the SEC’s continued pressure.

In July 2023, Judge Torres ruled that XRP sold on secondary markets does not qualify as a security, a decision widely celebrated in the cryptocurrency world. Following these developments, XRP’s price increased by 0.7%, reaching $0.54. Trading volume surged by 55%, hitting $1.31 billion, reflecting growing market confidence.