The U.S. Securities and Exchange Commission (SEC) has filed an appeal against Ripple Labs concerning a July 2023 ruling that favored Ripple, dismissing several claims about its sales of XRP as unregistered securities. The SEC's appeal emphasizes that Ripple's promotional activities created an expectation of profits for investors, thus classifying XRP as an investment contract under the Howey Test. The regulator contests the district court's view that sales on crypto exchanges are exempt from securities transactions and argues that XRP used in non-cash transactions still meets the criteria for such classification. Ripple's legal team argues that XRP is a digital currency rather than a security. The outcome of this appeal could significantly impact the broader crypto landscape, influencing regulatory clarity for digital assets. The appeal follows a lengthy dispute initiated in late 2020, which has drawn attention from investors and lawmakers alike, with implications for innovation in U.S. crypto regulation expected in the coming months.

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