The SEC Loses Appeal Motion Against Ripple
The U.S. Securities and Exchange Commission (SEC) has been unsuccessful in its attempt to appeal its loss against Ripple, the company responsible for the XRP token. U.S. District Judge Analisa Torres ruled on July 13 that the sale of XRP to retail customers through public exchanges did not meet the legal criteria of a security under federal securities laws. Dissatisfied with the ruling, the SEC filed a request for an interlocutory appeal on August 9.
Judge Denies SEC’s Motion for Appeal
In an order dated October 3, Judge Torres denied the SEC’s motion for certification of an interlocutory appeal and dismissed the regulator’s claims that there were significant differences of opinion regarding the court’s decision on other distributions.
Insufficient Evidence Presented by SEC
Referring to the Howey Test, which determines what qualifies as a security, Judge Torres stated that the SEC had not provided enough evidence to prove that programmatic buyers of XRP were influenced by the efforts of others. The judge concluded that Ripple’s Programmatic Sales did not lead investors to reasonably expect profits from Ripple’s efforts.
Future Developments in the Case
Although this is seen as a major setback for the SEC, there may be further developments in the future. Judge Torres has retained a trial date for the case, indicating that the courtroom battle is ongoing. Both parties have been given deadlines to submit motions and oppositions, with a pretrial conference scheduled for April 16, 2024.
Hot Take: A Potential Turning Point for Crypto
The SEC’s loss against Ripple could be considered a significant moment for the cryptocurrency industry. However, it is important to note that the case is far from over, and there may be more twists and turns ahead. The outcome of this legal battle will likely have implications for the regulatory landscape surrounding digital assets, shaping the future of the industry.
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