Judge Analisa Torres, presiding over the district court, recently dismissed the United States Securities and Exchange Commission’s (SEC) plea to challenge its previous loss in the case against Ripple Labs. Ripple Labs is known as the entity responsible for creating the XRP token.
In an order dated Oct 3, Judge Torres declined the SEC’s motion. The judge asserted that the regulatory body failed to sufficiently demonstrate significant legal questions or substantial grounds for differing opinions on the issue.
The SEC’s request for certification of an interlocutory appeal has been rejected. Additionally, their request for a stay has been dismissed as irrelevant.
The regulatory body didn’t suffer a complete defeat, as Judge Torres scheduled a trial for April 23, 2024, to address the unresolved aspects of the case.
Moreover, TradingView data revealed that upon receiving the news, the XRP price surged by almost 6%.
On July 13, Judge Torres issued a ruling partially favoring Ripple. It determined that the XRP token’s retail sales did not meet the legal criteria for classification as a security. However, the court did find that Ripple had violated securities regulations by directly selling XRP tokens to institutional investors.
Ripple Legal Battle: SEC Appeal Rejected, XRP Price Rises
In Aug, the regulatory body initiated an appeal. They were contending substantial disagreements on the applicable laws and asserting significant grounds for differing opinions.
However, the SEC initiated its legal action against Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen, in Dec 2020. This move led numerous cryptocurrency exchanges to remove the XRP token from their listings as a precaution against possible legal issues. After Judge Torres’ ruling in July, several crypto companies indicated their intentions to either relist the token or consider doing so in the future.
In recent months, the commission has turned its attention to various cryptocurrency companies. It has accused them of securities violations, particularly highlighting major exchanges like Binance and Coinbase.
On Aug 29, asset management firm Grayscale achieved a legal triumph against the SEC due to an appeal requiring reconsidering its application for a spot Bitcoin exchange-traded fund (ETF).
Related Reading | Bankman-Fried Trial Looms: DOJ Emphasizes FTX Asset Management As Key Aspect
“The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.”
Comments (No)