The News:
In a recent development, District Court Judge Analisa Torres has turned down the United States Securities and Exchange Commission’s (SEC) motion to appeal its case against Ripple Labs, the entity behind the XRP token. The decision came on October 3, where Judge Torres stated that the SEC did not sufficiently demonstrate that there were pivotal legal questions or significant grounds for differing viewpoints regarding the issue.
Key Points:
- The SEC’s request for an interlocutory appeal was declined, rendering their request for a stay moot.
- This ruling doesn’t signify a complete defeat for the SEC. Judge Torres has set a trial date for April 23, 2024, to discuss the unresolved aspects of the case.
- Following this announcement, XRP’s price experienced a nearly 6% increase, as per TradingView data.
- On July 13, Judge Torres had partially sided with Ripple, stating that the retail sales of the XRP token did not fit the legal classification of a security. However, the court did ascertain that Ripple breached securities regulations by selling XRP tokens directly to institutional buyers.
- In the subsequent month, the SEC chose to appeal this decision, asserting that there was a “substantial ground for differences of opinion” concerning the applicable laws.
Background:
The SEC initiated its lawsuit against Ripple’s CEO, Brad Garlinghouse, and co-founder Chris Larsen in December 2020. This move led several exchanges to remove the XRP token to sidestep potential legal issues. After Judge Torres’ verdict in July, numerous cryptocurrency firms expressed interest in relisting the token or considering such a move in the future.
In recent times, the SEC has been actively pursuing various crypto companies over allegations of securities infringements. This includes prominent cryptocurrency exchanges like Binance and Coinbase. On a related note, on August 29, asset manager Grayscale achieved a court win against the SEC, following an appeal that demanded a review of its application for a Bitcoin (BTC) exchange-traded fund.
Conclusion:
The ongoing legal battle between the SEC and Ripple Labs has seen significant twists and turns. While the recent denial of the SEC’s appeal motion is a noteworthy development, the final outcome remains to be seen with the trial scheduled for 2024. The crypto community will undoubtedly be keeping a close eye on further developments, given the potential implications for the broader industry.
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