The Securities and Exchange Commission (SEC) may not appeal the court ruling that partially favored Ripple Labs. This suggests the SEC wants to avoid setting a precedent that could hurt their future efforts to regulate cryptocurrencies.
Why the SEC May Avoid an Appeal
Kristina Littman, a former SEC official, believes the SEC may accept the lower court’s decision because of mixed rulings in similar cases. She notes that other judges have disagreed with the logic used in the Ripple case.
What’s at Stake
The initial ruling found that Ripple’s sale of XRP was not a security transaction. This was a major victory for Ripple, but the SEC did find that some sales to institutional clients were security transactions.
The SEC’s decision not to appeal could allow them to maintain a more flexible regulatory approach. By not appealing, they can avoid setting a precedent that could limit their ability to regulate cryptocurrencies in the future.
Current Market Situation
As of press time, XRP is trading at $0.50054.
