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HomeCrypto NewsMarketRipple Bursts SEC’s Claim of ‘XRP Has No Intrinsic Value’ in Court Filing

Ripple Bursts SEC’s Claim of ‘XRP Has No Intrinsic Value’ in Court Filing


Amid Ripple’s filing opposing the US regulator’s interim appeal move, Ripple has corrected the regulator’s claim that XRP has no inherent value. 

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Ripple’s Chief Legal Officer Stuart Alderoty recently encouraged XRP enthusiasts to view the recent action against the US regulator. In particular, he referenced a section where Ripple countered the Securities and Exchange Commission (SEC)’s claim that XRP has no intrinsic value. 

Pro-XRP attorney Bill Morgan shared parts of the content of Ripple’s reply with the XRP community.

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Ripple Counters SEC’s Claim

Recall that the regulator argued that XRP was merely a computer code in its motion seeking interlocutory appeal. The SEC claimed it was not seeking permission to appeal that XRP was a software code with no intrinsic value. 

Meanwhile, in the reply filing, Ripple argued the SEC was greatly mistaken. Ripple reaffirmed that the US court did not rule that XRP has no inherent value.

“The Court made no such ruling,” Ripple legal team proclaimed.

Moreover, the payment firm went on to clarify that XRP is a bridge virtual asset for facilitating intercontinental transactions. The team highlighted the court’s exact wording that XRP is a digital asset that does not satisfy Howey’s requirements. 

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The document read in part:

“… the Court found that an XRP token is not, in itself, an investment contract because it does not, in itself, meet Howey’s requirements.”

Ripple’s Intent for Counter Appeal

Notably, Ripple proclaimed its intention for cross-appeals in the recent filing against the SEC. 

In particular, Ripple stated that if the SEC’s bid for interim appeal is approved, it will simultaneously take steps to file cross-appeals. Among the rulings Ripple intends to review is the judgment related to institutional sales of XRP.

Specifically, the blockchain fintech company will appeal the decision classifying XRP as an investment contract in the context of institutional sales. 

Also, Ripple has stated its commitment to defending efforts by the SEC to classify post-lawsuit sales of XRP to ODL customers.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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