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- 1 The SEC faced yet another loss in its legal cases.
- 2 The recent hearing on October 3, 2023, was against the SEC as Judge Torres did not find the SEC’s arguments to be adequate.
The Securities and Exchange Commission (SEC) adds another loss in account of legal losses against the crypto companies. Following the decisive ruling from the US federal judge in favor of Ripple and XRP, the SEC filed an appeal against the decision. In a recent development, the financial watchdog was left with dust and ashes.
Federal judge Analisa Torres in the Southern District of New York denied the appealing motion from the SEC, according to a court order released on October 3rd, 2023.
Judge Torres has denied the SEC’s motion, asserting that the regulator did not adequately demonstrate the presence of controlling legal questions or substantial grounds for differing opinions on the matter.
The decision indicates that the judge believes that the SEC’s arguments did not meet the threshold required to warrant further consideration, at least at this stage of the legal proceedings. The case will likely continue to unfold as both parties present their arguments and evidence in court.
The decision by Judge Torres doesn’t constitute an outright loss for the regulator. Instead, the judge has set a trial date for April 23, 2024, to address the remaining issues in this legal matter.
While the SEC’s motion was denied on certain grounds, the case will proceed to trial to thoroughly examine the unresolved aspects of the dispute between Coinbase and the SEC. The trial will provide an opportunity for a more comprehensive legal review of the issues at hand.
Decisive Ruling in Favor of XRP
On July 13, Judge Torres issued a partial ruling in favor of Ripple. The court’s decision stated that retail sales of the XRP token did not fit the legal definition of a security. However, the court found that Ripple violated securities laws by selling XRP tokens directly to institutional investors.
The ruling represents a significant development in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) and clarifies the legal status of XRP in the context of securities regulation.
In response to Judge Torres’ ruling in favor of Ripple, the regulator, the U.S. Securities and Exchange Commission (SEC), took action in August by filing an appeal. The SEC argued that there were “substantial grounds for differences of opinion” regarding the applicable laws in the case.
The appeal reflects the SEC’s stance that the legal issues surrounding XRP’s classification as security are not settled and warrant further consideration by a higher court. The appeal sets the stage for ongoing legal proceedings to determine the regulatory status of XRP.
The SEC initiated its lawsuit against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen in December 2020, which had a significant impact on the cryptocurrency market. This legal action led to the delisting of the XRP token from many cryptocurrency exchanges, as they sought to mitigate potential legal risks.
However, after Judge Torres’ ruling in July, which partially favored Ripple, several crypto firms expressed their intent to either relist the XRP token or explore the possibility in the future. This indicates that the legal developments in the case have influenced the stance of some cryptocurrency exchanges regarding XRP.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
