The U.S. Securities and Exchange Commission (SEC) has filed a motion to appeal a ruling in the Ripple Labs lawsuit, which stated that XRP was not a security when sold to retail investors. The SEC claims there are "knotty legal problems" surrounding the court's application of the Howey Test and seeks a review. In July, Judge Analisa Torres ruled that XRP is generally not a security under SEC guidelines, particularly when distributed via programmatic sales. The SEC argues that the rulings on programmatic sales and other distributions present significant legal questions, warranting the agency's interlocutory appeal to be approved by the court.