The SEC Wednesday filed to appeal a 2023 court ruling that XRP is not considered a security when sold to retail investors on exchanges.

XRP, the native token of Ripple, experienced a significant decline of over 12% on Thursday, dropping to 51 cents per coin, following the US Securities and Exchange Commission's (SEC) announcement to appeal a pivotal court ruling.

XRP extended its losing streak on Thursday. The asset slipped to $0.5208 as traders digested the recent developments in the Securities & Exchange Commission (SEC) lawsuit. The US financial regulator’s decision to file an appeal on Thursday of the Ripple lawsuit has invited criticism from Ripple executives and XRP holders.

This appeal was very much on the expected lines, however, it led to the XRP price crashing nearly 11% moving all the way to $0.5375 levels.

The US Securities and Exchange Commission appealed a court decision ordering Ripple Labs Inc. to pay a $125 million civil penalty for improperly selling its XRP token, a fraction of the $2 billion the regulator sought in a long legal battle with the cryptocurrency company.

Brad Garlinghouse, CEO of Ripple Labs, has pledged to contest the United States Securities and Exchange Commission (SEC) in court following the regulator’s announcement that it would appeal a district court decision regarding the firm.

The Securities and Exchange Commission has appealed a court ruling in its case against Ripple Labs, under which the cryptocurrency company was fined $125M for improperly selling its XRP (XRP-USD) token.

Ripple Labs CEO Brad Garlinghouse vowed to fight the US Securities and Exchange C (SEC) in court after the regulator revealed its intention to appeal a district court’s ruling on its XRP token last year.