Judge Denies SEC’s Request for Early Appeal in Ripple Case
The legal battle between Ripple and the United States Securities and Exchange Commission (SEC) is still ongoing, with no official conclusion yet. However, the judge in the case has denied the SEC’s request for an early appeal.
Judge Analisa Torres rejected the SEC’s motion filed on August 18, which aimed to make an interlocutory appeal. The court document explaining the decision stated that while the Institutional Sales of XRP were considered securities, the Programmatic Sales and Other Distributions were not.
Essentially, the Court concluded that Programmatic Buyers did not have the same reason as Institutional Buyers to believe that Ripple would generate profits on their behalf.
The SEC had filed a motion to certify an interlocutory appeal regarding two parts of the Judge’s summary judgment. This recent decision means that the case will either proceed to trial in April or be dismissed entirely.
Implications of the Decision
Legal commentator Jeremy Hogan believes that this decision makes it harder for the SEC to win an appeal. He also highlights that speculating in a commodity alone is not enough for a security classification; reliance on the “efforts of others” must also be proven.
Following this news, Ripple’s native token XRP has seen a price increase. It gained 4.2% on its daily chart and has experienced overall gains of 6.77% over the past week and 5.05% over the month, currently trading at $0.53.
Hot Take: Ripple’s Legal Victory Puts Pressure on SEC
This recent decision by Judge Analisa Torres denying the SEC’s request for an early appeal is a significant blow to the regulatory agency. The clarification provided by the judge strengthens Ripple’s position and weakens the SEC’s case against the company. With the case now heading towards trial in April, Ripple has a chance to prove its innocence.
Moreover, this decision sends a clear message that speculating in a commodity alone does not make it a security. The SEC will face an uphill battle to prove that XRP falls under their jurisdiction. This legal victory for Ripple adds momentum to the ongoing debate about how cryptocurrencies should be regulated.
Overall, this outcome is a major setback for the SEC and highlights the challenges they face in regulating the rapidly evolving crypto industry.
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