In the legal battle between the United States Securities and Exchange Commission (SEC) and Ripple Labs, US District Court Judge Analisa Torres has denied the SEC’s motion to appeal its previous loss against the blockchain company. The case revolves around XRP, the cryptocurrency issued by Ripple Labs.
Judge Torres dismissed the SEC’s motion on October 3, stating that the regulatory body had failed to provide sufficient evidence to establish substantial legal questions or differences of opinion in the matter. As a result of this decision, a trial date has been scheduled for April 23, 2024, to address the remaining unresolved issues in the case.
Source: CourtListener XRP Price Surges Following Judge’s Decision
The news of Judge Torres’ decision had an immediate impact on the price of XRP. According to data from TradingView, the cryptocurrency’s value surged by nearly 6% in response to the development.
This legal saga began when Judge Torres ruled in favor of Ripple Labs in July, determining that retail sales of XRP did not meet the legal definition of a security. However, she also found that Ripple had violated securities laws by selling XRP tokens directly to institutional investors.
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SEC’s Ongoing Legal Battle
In August, the SEC moved to appeal this decision, arguing that there were significant grounds for differing legal opinions regarding the case.
Ripple Labs and the SEC have yet to provide immediate comments on the latest ruling. The SEC originally filed its lawsuit against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020, leading to several cryptocurrency exchanges delisting XRP to avoid potential legal consequences.
The SEC’s request to file an interlocutory appeal is DENIED. I’m not a lawyer but it seems the Court just told the SEC: You asked me to apply the “Howey” test, I did, and like it or not, you lost. https://t.co/0E4MS0iuRY pic.twitter.com/bkhCpum17n
— Brad Garlinghouse (@bgarlinghouse) October 4, 2023
Following Judge Torres’ July ruling, many crypto firms began considering the possibility of relisting the XRP token. The SEC has been actively targeting various cryptocurrency firms in recent months, alleging securities violations, including major exchanges such as Binance and Coinbase.
On August 29, asset manager Grayscale secured a partial legal victory against the SEC, leading to a court-ordered review of its application for a spot Bitcoin ETF. This case highlights the ongoing legal battles between regulators and the cryptocurrency industry.
As the case progresses toward its trial date in April 2024, it highlights the broader regulatory uncertainties facing the crypto industry. Clear guidance is needed for both regulators and industry players to navigate this evolving landscape.
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