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Ripple Labs has officially filed an appeal with the U.S. Court of Appeals for the Second Circuit, seeking to overturn parts of the July 2023 court ruling that distinguished between retail and institutional sales of its XRP token. 

Judge Analisa Torres initially ruled that while XRP sales to institutional investors could be classified as securities transactions, those sold on exchanges to retail investors were not, providing Ripple with a partial victory that was seen as a major milestone in the ongoing debate over U.S. cryptocurrency regulation.

Ripple's Chief Legal Officer, Stuart Alderoty, stated that the company’s appeal aims to clarify this ruling further. He suggested that the decision could ultimately strengthen Ripple's position against the Securities and Exchange Commission (SEC), as it may lead to more consistent definitions for digital assets across different investor types.

Alderoty further stated: “As we go through this process, please remember the SEC’s broader strategy: try to create distraction and confusion for Ripple and the industry. But honestly, it’s just background noise now.” 

“The hard part of the fight is behind us. Ripple’s business is growing and getting stronger every day even as this appeal process plays out.”

The SEC, which initially sued Ripple in 2020, has maintained that all XRP sales should be considered securities, while Ripple argues the token does not meet the Howey Test criteria for securities classification.

This case continues to capture significant attention in the cryptocurrency space, as it could set a precedent impacting broader SEC enforcement actions against other digital assets and blockchain firms.