XRP experienced a sharp drop, losing over 10% of its value following the U.S. Securities and Exchange Commission’s (SEC) latest move to appeal a pivotal court ruling in its lawsuit against Ripple Labs.

The legal battle between Ripple and the SEC has been ongoing since 2020, with the regulatory body asserting that XRP should be classified as a security. Despite a favorable ruling for Ripple in 2023, where Judge Analisa Torres declared that XRP itself is not a security, the SEC is now seeking to overturn this judgment.

The appeal, filed in early October 2024, challenges the court’s decision that secondary market sales of XRP do not constitute securities sales.

The SEC argues that the ruling contradicts established securities laws and Supreme Court precedents. Ripple’s legal team has expressed disappointment, calling the SEC’s continued pursuit of the case “misguided” and “an embarrassment for the agency.”

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