Judge’s Ruling: SEC’s Motion Denied
District court judge Analisa Torres issued a ruling on Oct. 3, striking down the United States Securities and Exchange Commission’s attempt to appeal against Ripple Labs. The judge noted that the regulator failed to substantiate there were pressing questions of law or significant grounds for dissent.
Implications for the SEC
Judge Torres stated, “The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot.” This decision doesn’t spell complete defeat for the SEC, as a trial is set for April 23, 2024 to further discuss unresolved issues.
Market Reaction: XRP Price Rises
After the news broke, XRP’s value witnessed an almost 6% spike, data from TradingView confirms.
Backdrop: The SEC vs. Ripple Saga
In a pivotal ruling on July 13, Judge Torres leaned in favor of Ripple. The judge decided that XRP token’s retail sales didn’t match the security’s legal definition. However, the court pointed out Ripple’s violation of securities regulations during its direct sales of XRP tokens to institutional buyers.
Challenging the judgment in August, the SEC contended there was “substantial ground for differences of opinion.”
December 2020 saw the SEC instigating legal proceedings against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen. This resulted in numerous exchanges sidelining the XRP token due to looming legal complexities. Post-July ruling by Torres, several crypto entities signaled their intent to relist the token or expressed interest in doing so.
SEC Targets Other Crypto Entities
The SEC has shifted its gaze towards multiple crypto organizations lately over purported securities infringements. Notably, major cryptocurrency exchanges like Binance and Coinbase have been under its radar.
On a brighter note for the crypto industry, Grayscale triumphed against the SEC in a court appeal on Aug. 29, leading to a review mandate for its application for a Bitcoin exchange traded fund.