The legal fight between Ripple and the SEC has several new developments. Non-profit Better Markets has filed the Second Circuit Court of Appeals to reverse the 2023 decision that upheld the SEC in their lawsuit against Ripple.
The organization explains how the court applied Howey Test incorrectly in their ruling. After winning part of its legal battle Ripple saw major gains with XRP.
In 2023 District Judge Analisa Torres stated XRP was classified as a “security” only during its sale to institutional buyers which helped Ripple achieve success. According to trade data XRP lifted its worth by 490% during a 90 days window. The current amicus brief creates risks to XRP’s ongoing growth.
Better Markets Joins SEC to Challenge Ripple’s 2023 Verdict
Better Markets sided with the SEC’s court challenges since the 2023 verdict made it easier for new cryptocurrency offerings to harm retail investors. The brief claims retail trading on exchanges should remain subject to securities regulations to protect small investors when securities laws favor large financial institutions.
The non-profit organization claims Ripple built unrealistic profit expectations around its blockchain services according to the standards of the Howey Test. When the SEC lacks regulatory power it fails to protect both major firms and private investors.
The document highlighted potential impacts beyond cryptocurrencies which could allow many investment contracts to escape securities rules. In a response, legal advisor Jeremy Hogan tells us the amicus brief got the trial judge’s decision wrong.
XRP Thrives Despite Legal Battles, Surging Over 115% in Two Months
The judge’s ruling does not specify that XRP trades on exchanges escape securities rules because buyers do not directly purchase from Ripple according to Hogan. The court established programmatic XRP sales took place through “blind bid/ask orders” because buyers did not depend on Ripple’s efforts to set prices. Hogan claimed the document did not examine the essential piece of evidence.
Legal challenges do not stop XRP from doing well. The cryptocurrency advanced by more than 115% during 60 days after SEC Chair Gary Gensler left his role. From its November 2024 starting price of $0.50 XRP reached $3.20 before proceeding to $3.09 at press time. During the last 24 hours total trading volume shot up from $7.65 billion to $8.58 billion by 12%.
The Ripple vs SEC legal dispute may transform the crypto business structure and change US financial authority policies.
