- The SEC signals intent to appeal the XRP non-security decision.
- XRP community members and legal experts respond vociferously to Bloomberg’s coverage.
Bloomberg Ignites Controversy with SEC v. Ripple Reporting
Bloomberg Crypto recently sent shockwaves through the cryptocurrency world, particularly among the XRP community, when it reported the SEC’s plans to appeal the court’s ruling on XRP’s non-security status. Sonali Basak, from Bloomberg, elaborated on this through an analysis of the ongoing SEC v. Ripple lawsuit.
Mixed Reactions and Clarifications
This reporting drew ire and swift responses on X (previously known as Twitter). Many XRP advocates targeted Bloomberg and Basak, accusing them of misleading their audience. Among the voices correcting the narrative, one significant one stood out — prominent XRP Youtuber, Van Winkle. According to the enthusiast, Judge Torres had definitively ruled that XRP was not a security and asserted that the SEC was not appealing this specific designation.
The SEC asked a federal judge for permission to appeal her ruling that Ripple Labs’ XRP token is not a security when sold to the general public, arguing that the decision could affect other cases involving cryptocurrencies.@sonalibasak reports https://t.co/B20JVrkUOA pic.twitter.com/YNNrfuRzSm
— Bloomberg Crypto (@crypto) August 22, 2023
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Adding more weight to the community’s reaction was Attorney John Deaton. The legal expert, who notably represented the XRP community in the SEC v. Ripple lawsuit, expressed willingness to appear on Bloomberg. His intent? To set the record straight. Deaton highlighted his readiness to delve into the nuances of the SEC’s interlocutory appeal, emphasizing Ripple’s rebuttal to the regulatory body’s claims. As of this moment, Bloomberg hasn’t indicated if they would accommodate Deaton’s offer.
Diving Deeper: The SEC’s Stand on XRP
While the whirlwind of reactions continues, it’s pivotal to understand the essence of the SEC’s recent moves. Just a week ago, the SEC approached the courts to certify an interlocutory appeal in connection with the Ripple case. Their objective revolves around revisiting Judge Torres’ stance on Ripple’s systematic XRP sales and its other distributions — both of which were categorized as non-securities by the court.
Yet, the intriguing aspect is the SEC’s own admission. In their appeal, they conveyed the notion that the ruling embodies pivotal legal questions which are grounds for diverse opinions. This perspective, they argue, is also shared by Judge Rakoff in the Terra case, who recently showcased reservations about the logic employed by Judge Torres.
However, amidst this legal jostling, the SEC did make one clear acknowledgment: the digital assets, including XRP, are not in themselves securities. Their contention doesn’t revolve around challenging the fundamental nature of the XRP asset, but seemingly the operations and transactions related to it.
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