Judge Rejects SEC’s Motion to File an Appeal Against Ripple Ruling – District Court Judge Analisa Torres has dismissed the United States Securities and Exchange Commission’s request to appeal its defeat against Ripple Labs, the entity responsible for releasing XRP tokens.
In a court order issued on October 3rd, Judge Torres declined the SEC’s request, asserting that the regulatory body did not meet the criteria to demonstrate the existence of pivotal legal questions or substantial grounds for differing viewpoints on the matter. “The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot.”
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It’s important to note that this decision doesn’t constitute a complete defeat for the regulatory body. Judge Torres has set a trial date for April 23, 2024, to address the unresolved aspects of the case. Following this announcement, the price of XRP experienced an immediate 6% increase, as reported by TradingView data.
On July 13, Judge Torres issued a partial ruling in favor of Ripple, determining that the retail sales of the XRP token did not align with the legal definition of a security. Nevertheless, the court did conclude that Ripple had breached securities laws by directly selling XRP tokens to institutional investors. In August, the regulator moved to appeal this decision, arguing that there was “substantial ground for differences of opinion” on the laws at hand.
In December 2020, the SEC initiated legal action against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen, leading several exchanges to remove the XRP token from their listings to avoid potential legal issues. Subsequent to Judge Torres’ ruling in July, many cryptocurrency companies expressed their intentions to either relist the token or consider doing so in the future.
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Over the past few months, the SEC has focused its attention on various cryptocurrency firms, alleging securities violations, including high-profile exchanges such as Binance and Coinbase. On August 29, Grayscale, an asset management company, secured a legal victory against the SEC through an appeal that mandated a review of its application for a Bitcoin exchange-traded fund.