US SEC Confirms XRP’s Non-Security Status in Recent Court Filing

The US SEC announced its acknowledgment of the non-security status of digital assets, with a special emphasis on XRP.

This news has emerged in the context of the SEC’s move to appeal the recent legal victory secured by Ripple Labs.

The regulatory landscape for cryptocurrencies is evolving, and this latest move has garnered substantial attention within the crypto community.

The SEC’s filed motion holds a crucial statement that has grabbed the crypto world’s attention. The regulatory body has stated:

“The SEC does not seek appellate review of any holding relating to the fact that the underlying assets here are nothing but computer code with no inherent value.”

This assertion by the SEC marks a pivotal moment in the ongoing debate over whether digital assets should be classified as securities.

The announcement has received an enthusiastic response from various corners of the cryptocurrency space, particularly from supporters of XRP.

The acknowledgment by the SEC has brought joy to the XRP community, often referred to as “XRP armies.”

Notably, attorney John Deaton expressed that the SEC’s recognition was influenced by the substantial support of more than 75,000 XRP holders who joined an ongoing lawsuit. Deaton highlighted:

“We fought to have the judge actually write that the token itself is not the security. In fact, it was the first section in our argument in the Brief.”

In parallel with this acknowledgment, the SEC is making significant legal moves. The regulatory body has initiated an interlocutory appeal in its legal dispute with Ripple Labs.

The SEC formally requested the U.S. District Court in the Southern District of New York (SDNY) to certify this appeal.

Coincidentally, this request came shortly after Judge Analisa Torres, who is overseeing the case, granted the SEC’s motion for leave to file an interlocutory appeal.

The focus of the SEC’s appeal centers on Judge Torres’ previous ruling, which determined that Ripple’s programmatic sales of XRP and other distributions do not qualify as securities.

Ripple Labs is expected to provide its response to the SEC’s motion by September 1, which adds an element of anticipation to the unfolding legal drama.