Judge Torres Rejects SEC’s Motion to Appeal Ripple Labs Ruling: XRP Price Dips and Courts Reopen

SEC’s Appeal Taken Off the Table

District Court Judge Analisa Torres threw a wrench in the SEC’s plans by denying their motion to appeal a previous judgment regarding Ripple Labs and its XRP token. According to the October 3 court order, the SEC failed to prove that there were any pivotal legal questions worthy of an appeal or substantial disagreement among legal experts. In simpler terms, the SEC was told to take a seat.

What Does This Mean for Ripple?

This isn’t necessarily a bullseye for the SEC, as Judge Torres scheduled a trial for April 23, 2024, to tackle the remaining legal dust-ups. Ripple isn’t out of the woods yet, but for now, this ruling certainly gives the company a reason to pop some champagne.

Ripple’s Legal Journey: A Bumpy Ride

Circling back to July 13, Judge Torres had already ruled that retail sales of XRP did not qualify as a security, which cushioned the blow for Ripple Labs. However, the court did find Ripple guilty of violating securities laws in its transactions with institutional investors—talk about a split verdict!

XRP Price Action: A Rollercoaster Response

Following the news of Judge Torres’ latest ruling, the price of XRP skyrocketed by nearly 6%, though market watchers might find this a bit puzzling considering the mixed judicial findings. The cryptocurrency market often takes a ‘good news, bad news’ approach; maybe this was more ‘good news’ than ‘bad news’ in investors’ minds.

The Broader Implications

The SEC has had its hands full lately, targeting various crypto firms over alleged securities violations. This latest ruling could set a precedent, especially as notable firms like Binance and Coinbase face scrutiny as well. Even asset manager Grayscale had its moment in the sun when it bested the SEC regarding a Bitcoin ETF review. Buckle up; the crypto courtroom drama is far from over!

“The SEC’s request to file an interlocutory appeal is DENIED,” remarked Brad Garlinghouse, Ripple’s CEO. “You asked me to apply the ‘Howey’ test, I did, and like it or not, you lost.”