The US Securities and Exchange Commission has formally filed an appeal in its legal battle with Ripple Labs, challenging a July 2023 ruling that partially dismissed claims against the company.

It was submitted late Wednesday, attractiveness It focuses on whether Ripple's XRP sales to retail investors qualify as unregistered securities transactions under federal law.

Citing the Howey Test, the SEC says that Ripple's promotional efforts created expectations of profits among investors, making XRP an investment contract.

Ripple and the SEC did not immediately respond Decryption Request for comment.

While the regulator had already filed its appeal in mid-October 2024, following the district court's partial ruling in favor of Ripple in July 2023, Wednesday's opening brief marks a formal step in the appeals process, as the SEC outlines its arguments for challenging the earlier court ruling. . resolution.

The agency disputes the district court's finding that sales on cryptocurrency exchanges do not meet this standard, asserting that investors' expectations hinge on the actions of the issuer, not the identity of the seller.

The brief also challenges the lower court's decision to exclude XRP distributed in non-cash transactions, such as employee compensation and business incentives, from securities laws.

The SEC confirms that the labor and services received in exchange for XRP meet the “money investment” standard outlined in the Howey Framework.

Ripple's legal team has consistently rejected the SEC's claims, maintaining that XRP is a digital currency and not a security.

On Wednesday, Chief Legal Officer Stuart Alderotti described the latest SEC filing as “Reframe failed argumentsHe expected the issue to lose momentum under the Trump administration.

The outcome of the appeal could have far-reaching implications for the cryptocurrency industry. Industry stakeholders view this issue as a bellwether for regulatory clarity on digital asset classifications.

A reversal could embolden the SEC to pursue similar cases, while a defeat could diminish its enforcement authority.

The dispute, which began in late 2020, has attracted significant attention from investors and lawmakers alike.

Ripple has described the SEC's enforcement actions as a barrier to innovation, and positioned the case as part of a broader debate about the future of cryptocurrency regulation in the United States.

A decision in the Court of Appeal is not expected until later this year.