Published on oktober 3, 2024, 12:22 am
Image source: Fox News
```json [ "TLDR: SEC appealed a ruling regarding XRP, stating some sales were securities but XRP itself was not. SEC's Chief Enforcement Officer is stepping down amidst this. Institutional interest in XRP grows with Bitwise applying for an XRP ETF trust, awaiting SEC approval. Reflects evolving crypto regulations and the need for legal clarity in financial markets.", ] ```
The Securities and Exchange Commission initiated legal action against Ripple Labs and its founders back in December 2020, marking a significant chapter in the world of cryptocurrencies. Recently, the SEC filed an appeal on October 2, 2024, challenging a ruling made by Judge Analisa Torres regarding Ripple’s XRP.
Judge Torres previously determined that the sale of XRP did not fall under securities sales, indicating that XRP itself was not considered a security based on the parameters outlined in the SEC’s Howey test. While this decision was favorable for Ripple Labs and the broader crypto community, it also acknowledged that some early sales by Ripple founders to institutional investors did qualify as securities sales due to specific circumstances.
In light of these developments, the SEC’s Chief Enforcement Officer, Gubir Grewal, announced his intention to step down on October 11. Grewal, known for his stringent enforcement approach toward the crypto industry, has been scrutinized for his numerous enforcement actions during his tenure. While a permanent successor is being sought after for Grewal’s position, Sanjay Wadhwa will temporarily assume the role of Interim Chief Enforcement Director at the SEC.
Simultaneously with these events, there has been growing institutional interest in XRP. Bitwise recently submitted an application for an XRP ETF trust in Delaware. However, this move does not signify immediate SEC approval given the ongoing legal proceedings surrounding XRP.
Overall, these recent developments underscore the evolving regulatory landscape surrounding cryptocurrencies like XRP and highlight the importance of legal clarity in shaping their future trajectory within financial markets.
Original article posted by Fox News
