SEC is preparing to appeal the court decision in the Ripple case – Bits Media

United States Securities and Exchange Commission (SEC) intends to appeal the court decision regarding the XRP token, partially accepted in favor of the issuer, Ripple.

The verdict of the Court of the Southern District of New York was issued on Thursday, 13 july, With a mandatory reservation, which provides SEC with the opportunity to protest the solution and change the course of litigation in its favor.

“Having examined the economic reality and a set of circumstances, The court comes to the conclusion, that the institutional sales of the XRP Ripple Labs were an unregistered offer and the sale of investment contracts in violation of section No. 5 of the securities law ”, - says the court decision.

At the same time, the judge of the Torres (Analyzes towers) Decided, that XRP cryptocurrency sale and sale operations, digital assets performed through exchanges, are not qualified as an offer and sale of investment contracts.

Commenting on a judicial conclusion, The representative of the SEC said, that the regulator “will make every effort to revise the decision” and reserves the right to appeal.

“The court agreed with the SEC in that, that the Haui test allows an adequate comparative analysis of cryptocurrency transactions and securities operations, and also rejected Ripple's arguments about that, which, according to the company, is an investment contract. We are satisfied: The court established, that various material and intangible assets can serve as the subject of an investment contract, And also that under certain circumstances, XRP tokens were offered and sold Ripple to institutional clients in violation of securities laws ", - says in the statement SEC.

The representative of the commission emphasized: The federal judge of the analysis Torres drew attention, that ignorance of the law on securities does not exempt representatives of the crypto industry from responsibility, Having appointed new court hearings to determine personal guilt/innocence of the general director of Ripple Brad Garlinghaus (Brad Garlinghouse) and executive chairman Chris Larsen (Chris Larsen). 

Previously, Ripple Technical Director David Schwartz (David Schwartz) warned
users about fake distributions XRP tokens, who organize scammers, Those who want to take advantage of the excitement around the victory of the company in court litigation with the American regulator.