Judge Analisa Torres has denied the Securities and Exchange Commission’s (SEC) move to appeal the Ripple judgment, which is a key milestone in the legal struggle between Ripple and the SEC.
Judge Torres dismissed the SEC’s application in an Oct. 3 court ruling, finding that the agency was unable to fulfill the requirement of demonstrating that there were significant issues of law or significant causes for conflicts of thought on the topic.
“The SEC’s petition for authorization of interlocutory appeal is rejected, and the SEC’s demand for an extension of time is dismissed as pointless.”
This ruling is another victory for Ripple, the blockchain transaction business, as it defends itself against claims of executing an unregistered securities issue.
In the Ripple Case, a Judge Denied the SEC Petition For Reconsideration
The SEC’s application for permission to launch an interlocutory appeal was refused, according to court filings. The court held that the SEC failed to produce adequate proof to indicate that the Programmatic Buyers who acquired XRP, Ripple’s native cryptocurrency, had a “speculative purpose resulting from the entrepreneurial or managerial actions of others.”
Judge Torres stressed that permitting an interlocutory petition would merely extend the legal process, perhaps resulting in many rounds of administrative review.
Judge Torres, on the other hand, underlined the need to move the matter to a final decision, which would make way for a single round of appeal review on a full record.
The SEC’s move for an interlocutory appeal was denied, reinforcing Ripple’s stance and setting the ground for the trial, which is expected to commence on April 23, 2024. The court has ordered the parties to follow the previously established preliminary filing dates, including motions in limine, and to provide necessary papers such as the combined pretrial order, applications to charge, judgment form, and hearing questions.
Are They Nearing A Major Victory?
While the litigation process is likely to be lengthy, Judge Torres’ ruling enhances Ripple’s legal position and gives the firm momentum in its fight against the SEC’s charges.
Ripple’s Programmatic Sales, Other Distributions, and fair notice defenses are anticipated to be at the center of the trial’s complicated legal and factual problems.
However, after a partial success on July 13 and the current denial of the SEC’s request, Ripple looks to be on the verge of a substantial victory that might set a precedent for the developing sector as a whole.
This prospective victory has significant ramifications not just for the firm, but also for other cryptocurrencies that are now being scrutinized by the US regulatory agency, as it may influence its definition of these digital assets as commodities rather than securities.
Ripple’s favorable position is enhanced when the SEC’s resources are withheld, raising the chance of a significant triumph with far-reaching ramifications.
Brad Garlinghouse’s Response To The Court Order
After market hours, the SEC failed to respond immediately to inquiries regarding information. Ripple’s lawyers, Chief Executive Brad Garlinghouse, and co-founder Chris Larsen did not react right away to similar queries.
The SEC initially filed a complaint against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen in December 2020, forcing several exchanges to delist the XRP coin to avoid any legal issues. Following Torres’ judgment in July, numerous cryptocurrency companies stated that they would relist the token or consider doing so in the future.
In recent months, the SEC has pursued several cryptocurrency businesses on claims of securities breaches, including prominent cryptocurrency exchanges Binance and Coinbase.
Grayscale, an asset management company, won a court victory over the SEC on August 29 after an appeal demanding a reconsideration of its application for a spot Bitcoin ETF stands for exchange-traded fund.
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
XRP Value Impact On SEC Rejection
The SEC’s move to appeal was denied, which is considered a big victory for Ripple, which has been fighting the litigation for several years. The complaint claims that Ripple breached investor protection regulations by selling approximately $1.3 billion in XRP without registering the offers and transactions of XRP beginning in 2013.
The price of XRP has increased significantly in response to Judge Torres’ latest judgment. Following the announcement, the cryptocurrency gained 4.5%, suggesting a resumed upward trend and setting its eyes on recovering the $0.6000 mark.
Closing Thoughts
The SEC has not yet spoken on the decision, and it is uncertain whether it is going to challenge it more. However, because the move to appeal was denied, the matter will now continue to trial, which is slated for April of next year. Let’s wait until April for the result.
