The US Securities and Exchange Commission said it intends to challenge a federal judge’s landmark ruling that Ripple Labs Inc.’s XRP token is a not a security when sold to the general public.
US District Judge Analisa Torres in New York last month said that the crypto firm’s sales of its XRP token to sophisticated investors met the test for an investment contract under federal securities law because those buyers “would have understood that Ripple was pitching a speculative value proposition for XRP with potential profits.” But the judge said that didn’t apply to programmatic investors, meaning the broader public buying crypto on exchanges.
