Judge Analisa Torres has denied the U.S. Securities and Exchange Commission’s (SEC) motion to file an interlocutory appeal in the XRP Lawsuit. The judge stated that the SEC failed to demonstrate that the appeal would advance the termination of the litigation. She also argued that the question of the Howey test does not arise in this case and that Ripple’s programmatic sales did not lead investors to expect profits from its efforts. The judge rejected the SEC’s argument that the certified issues have precedential value for other crypto cases, stating that her findings were based on the unique facts of this case. Ripple’s legal chief, Stuart Alderoty, commented that the July 13 Summary Judgment remains the law of the land, affirming that XRP is not a security.
The judge’s denial of the SEC’s motion is a blow to their case against Ripple and reinforces the court’s previous ruling that XRP is not a security. This decision has significant implications for how crypto assets are classified and regulated. While SEC Chair Gary Gensler has labeled most cryptocurrencies as securities, this judgment challenges that notion. The judge highlighted that Ripple’s programmatic sales did not meet the conditions of an investment contract and criticized the SEC for failing to provide evidence of Ripple’s promotion to the general public.
Overall, this ruling strengthens Ripple’s position and raises questions about how cryptocurrencies should be defined under securities laws. It remains to be seen how this decision will impact the price of XRP and future regulatory actions in the crypto industry.
[Author: Anvesh]
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