- Do Kwon, co-founder of Terraform Labs, has used the XRP judgment as a precedent.
- The SEC has called the judgment a “wrongful decision,” suggesting a strong reaction.
A potential setback for the XRP community may be on the horizon as the US SEC hinted on Friday that it intends to appeal the Summary Judgement in the Ripple vs. SEC dispute.
The federal regulatory body has said that it intends to review the judgement since it was a “wrongful decision.” Intriguingly, it suggested that the SEC staff was contemplating other avenues for reviewing the judgement.
Do Kwon, co-founder of Terraform Labs, is being sued over charges of fraud and has used the XRP judgement as precedent. Kwon argued that the government could not bring charges against him because of Judge Torres’s judgement that the sale of XRP is not a security.
All Eyes on SEC
Furthermore, the US SEC responded on Friday by filing a petition in the Terraform Labs case, arguing that the court shouldn’t take into account the Ripple judgement since the SEC plans to review it.
The filing read:
“Respectfully, those portions of Ripple were wrongfully decided, and this court should not follow them. SEC staff is considering the various available avenues for further review and intends to recommend that the SEC seek such review.”
Moreover, the SEC has called the judgement a “wrongful decision,” suggesting a strong reaction to a request to review the verdict. Following Ripple’s partial victory over the SEC, the value of XRP, the company’s native cryptocurrency, has surged dramatically. As a consequence of this successful legal battle, XRP has been relisted on major cryptocurrency exchanges, leading to an increase in both demand and trading volume.
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