The SEC is heading back to court, filing an appeal over a ruling that curbed its authority to regulate cryptocurrency markets. The regulator is taking the July 2023 decision from Judge Analisa Torres to the 2nd U.S. Circuit Court of Appeals, after the court ruled that Ripple Labs’ XRP token sales on public exchanges weren’t securities.
The court had ruled that XRP sales totalling $757 million were not subject to the SEC’s investor protection laws, but $728 million in institutional XRP sales were. The SEC had hoped for a larger fine, initially aiming for $2 billion, but was hit with just $125 million – a penalty currently on hold pending appeal.
Ripple, which has been in the SEC’s sights for some time, might also appeal parts of the decision. If the appeals court sides with Ripple, the SEC could face more difficulty reining in crypto exchanges like Coinbase and regulating future digital asset offerings.
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