Bloomberg Reports “SEC Moves to Appeal” XRP Non-Security Status, Community Reacts

XRP community members criticize Bloomberg for reporting that the SEC is seeking to appeal Judge Torres’ decision on XRP’s non-security status.

XRP community members have taken to X (formerly Twitter) to slam Bloomberg’s Sonali Basak over her recent SEC v. Ripple case analysis.

Bloomberg Says SEC Wants to Appeal XRP Non-Security Status

Yesterday, Bloomberg Crypto, the cryptocurrency channel of Bloomberg, shared video footage of Basak saying that the SEC is seeking permission to file an interlocutory appeal challenging the court’s decision that XRP is not a security.

The video also contains a portion of Bloomberg’s recent article dubbed “SEC moves to appeal Ripple ruling that XRP is not a security.” 

In the video, Basak discussed other aspects of the lawsuit, including Judge Jed Rakoff’s rejection of Judge Analisa Torres’ logic in the case.

The SEC asked a federal judge for permission to appeal her ruling that Ripple Labs’ XRP token is not a security when sold to the general public, arguing that the decision could affect other cases involving cryptocurrencies.@sonalibasak reports https://t.co/B20JVrkUOA pic.twitter.com/YNNrfuRzSm

— Bloomberg Crypto (@crypto) August 22, 2023

XRP Community Shade Bloomberg

Notably, Basak and Bloomberg have received backlash from XRP community members. Many XRP enthusiasts slammed Bloomberg for misinforming its viewers.

Simply a staggering amount of misinformation in that short segment.

It seems impossible for educated reporters like yours to be so entirely wrong on all matters of actual substance there.

It gets harder everyday to believe this is not intentional misdirection.

Correction soon?

— XRPGoat (@XrpGoat) August 23, 2023

Jeanne said:

Wrong…you guys good with being wrong?

— Jeanne ☀️ (@jmmpayne) August 22, 2023

Some enthusiasts clarified that Judge Torres ruled that XRP is not a security and that the SEC is not seeking to challenge the non-security status of XRP. Prominent XRP YouTuber Van Winkle is one of the enthusiasts who gave this opinion. 

What a shame @markets is reporting fake news

The #XRP token is not under review

Its not a security plan and simplehttps://t.co/vGDPJyVP66

— Ripple Van Winkle | Crypto Researcher ?? (@XRPNews_) August 22, 2023

Deaton Reacts 

Interestingly, Attorney John Deaton, who represented the XRP community in the SEC v. Ripple lawsuit, reacted to the trending video.

Reacting, Attorney Deaton said he is willing to visit the Bloomberg studio to clarify the current happenings in the SEC v. Ripple case if Basak cares about getting accurate information.

Sonali, if you truly care about reporting accurately, I am willing to come on and explain to your viewers exactly what is being requested by the SEC, Ripple’e response, and if granted, exactly what will be appealed and not appealed. Thank you.

— John E Deaton (@JohnEDeaton1) August 22, 2023

Deaton, who represented XRP holders in the lawsuit, said he would explain to Bloomberg’s viewers what the SEC requests in its interlocutory appeal. He also promised to highlight Ripple’s response to the commission’s request.

At press time, it is unclear whether Bloomberg will invite Attorney Deaton for a discussion.

SEC Admits XRP Isn’t a Security in Interlocutory Appeal Request

Meanwhile, the issue of SEC’s interlocutory appeal has attracted the crypto community’s attention. Recall that the SEC filed a motion last week to certify an interlocutory appeal in the Ripple case.

The securities regulator is seeking a review of Judge Torres’ decision on Ripple’s programmatic sales of XRP and other distributions. Recall that the court declared both transactions as non-securities.

However, the SEC stated that the ruling involves controlling questions of law on which there are substantial grounds for difference of opinion. In its argument, the SEC said the difference of opinion is already reflected by Judge Rakoff, the judge overseeing the Terra case, who recently disagreed with the logic Judge Torres relied on during her summary judgment decision.

Interestingly, the SEC admitted in the motion that digital assets themselves, including XRP, are not securities. The regulator pointed out that it does not seek an appellate review on any holding relating to the fact that the underlying asset- XRP- is not a security.