Why US SEC Still Insists XRP Is a Security Despite Court Ruling?

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As a seasoned researcher with years of experience in the dynamic and ever-evolving world of cryptocurrencies, I find myself closely watching the ongoing saga between Ripple (XRP) and the US Securities and Exchange Commission (SEC). The latest twist, with Bitnomial suing the SEC over its classification of XRP futures as “security futures,” and Ripple’s cross-appeal in the ongoing case, has added a new layer of complexity to this high-stakes game.

Despite a court decision classifying XRP as not a security, the U.S. Securities and Exchange Commission (SEC) remains unyielding on its stance regarding XRP’s status. In response to this position, Bitnomial, a major crypto derivatives exchange, has filed a lawsuit against the SEC for asserting that XRP futures are “security futures.” Meanwhile, Ripple, the blockchain company involved in a legal dispute with the SEC, has countered by filing a cross-appeal in this ongoing court battle.

US SEC Reiterates Stance On XRP Security Status

Binomial, a leading crypto derivatives exchange, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) regarding their classification of XRP Futures as “Security Futures”. In their court filing, they argued that Ripple’s native cryptocurrency is already under the regulatory jurisdiction of the Commodity Futures Trading Commission (CFTC). They claimed that the SEC is exceeding its authority, a sentiment shared by many in the crypto industry.

In addition, the legal action argues that it’s unfair for the agency to require Bitnomia to register as a securities exchange, given that Ripple’s token hasn’t been registered as a security. Bill Morgan, an advocate for XRP, has criticized the agency’s handling of this case.

He said that the agency used its summary judgment briefs from the Ripple SEC case to justify its stance. However, Morgan noted that the agency had overlooked the fact that the court rejected its argument that all XRP sales were securities and found the token itself to be non-security.

Why US SEC Still Insists XRP Is a Security Despite Court Ruling?

Simultaneously, the wider cryptocurrency community views this regulatory action by the agency as an attempt to exert control over digital assets, which is met with growing opposition. On the other hand, Bitnomial, in a recent statement, pointed out that the CFTC’s actions underscore the existing regulatory burden that the exchange already carries.

Ripple Cross-Appeal Sparks Discussions

In the face of the U.S. Securities and Exchange Commission’s persistent stance that XRP is an investment contract (security), the cryptocurrency community finds itself in a state of anticipation. This has ignited debates on whether the agency might contest the court’s ruling in its pursuit to appeal the case to the appellate court.

Yet, Ripple has recently countered with a cross-appeal in the case, acting as a retaliation to the continuous legal pressure from the agency. In July 2023, Judge Torres made a ruling that the cryptocurrency traded on secondary markets was not classified as a security – a decision celebrated across the broader crypto market.

As a crypto investor, I’ve been closely following the recent actions taken by the US Securities and Exchange Commission (SEC). These latest moves have certainly ignited discussions within our community, and they’ve also added to the ongoing speculation about the agency’s possible intentions in prolonging this high-profile case. The uncertainty surrounding their motives has definitely caused some concern among us investors.

Given the latest updates, the court has taken care of necessary documentation and sent a notification to the lawyer about an inadequate appeal. The appeal documents have now been forwarded to the U.S. Court of Appeals (USCA) along with the required appeal fee payment.

Significantly, Ripple’s decision to file a cross-appeal underscores its commitment to upholding its view on Ripple’s classification as a crypto. This action seems to be paving the way for a lengthy and heated legal dispute. Meanwhile, it seems that cryptocurrency supporters have expressed approval for the recent cross-appeal and Bitnomial’s lawsuit against the U.S. Securities and Exchange Commission (SEC).

Currently, the value of XRP is surging by 2.4%, currently priced at approximately $0.5378. Simultaneously, its trading volume increased by 55% to reach a massive $1.31 billion. In the recent 24-hour period, XRP reached a peak of $0.5432. Additionally, the open interest in XRP Futures contracts also grew by 4%, amounting to $713.26 million, suggesting that market participants are becoming more optimistic about this digital currency.

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2024-10-11 12:31