Crypto regulation in the U.S. could drastically change in the coming months, with Ripple's case being the focus. On October 2, 2024, the SEC filed a new appeal against Ripple Labs, reigniting debates over the legal status of cryptocurrencies. After the 2023 ruling in favor of Ripple, the appeal could alter the rules for the entire crypto industry.
The litigation centers on whether secondary sales of the XRP token are transactions involving securities. The judge previously ruled that XRP is not a security; however, Ripple's primary sales to institutional investors fall under the criteria of an investment contract.
If the ruling in favor of Ripple stands, it would weaken the SEC's ability to regulate cryptocurrencies as securities. This case could set an important precedent and influence future regulation of digital assets.
