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Ripple, a cryptocurrency firm, has objected to the U.S. Securities and Exchange Commission’s (SEC) appeal of a federal judge’s ruling in the SEC’s closely-watched case against Ripple. The decision, made by a federal court judge early this year, dismissed the SEC’s claim that Ripple’s crypto, XRP, is an unregistered security.
In the filing, Ripple argues that the SEC’s position is wrong, asking the appeals court to deny its motion to overturn the federal judge’s ruling. The company also claims that the SEC’s appeal is not timely and should be denied on that basis.
Ripple says that the SEC’s position is “inconsistent with the plain terms of the securities laws, with decades of securities-law precedent, and with the agency’s own approach in the past.”
Ripple’s legal response concluded by noting that the SEC’s position is “contrary to the investors’ reasonable expectations and would threaten to cause immense disruption to the cryptocurrency industry.”
Ripple’s response to the SEC’s appeal is sure to draw more debate around the future of cryptocurrency regulation in the U.S. The SEC has long argued that some digital currencies, including XRP, are not commodities but instead are securities that must be regulated by the agency. Ripple has disagreed, claiming that XRP is a digital asset, not a security, and as such, should not be subject to the SEC’s regulations. The SEC’s appeal will determine the fate of XRP and could have bearing on how cryptocurrencies in general are regulated.