SEC Appeals Ripple XRP Case, Claims Wrong Decision

The U.S. Securities and Exchange Commission (SEC) has filed new documents in its lawsuit against Terraform Labs and its CEO, Do Kwon, suggesting that it may appeal the recent mixed ruling in the Ripple case. The SEC argues that the Ripple decision was flawed and conflicts with the Howey test, which determines whether a financial instrument falls under SEC regulation. The agency believes that the judge should dismiss the recent rulings related to the retail sales of XRP, as it creates an artificial distinction between institutional and retail investors. Terraform Labs and Do Kwon have been battling the SEC since earlier this year.