The US District Court of New York has rejected the United States Securities and Exchange Commission’s (SEC) request to appeal the ruling in the Ripple case, which determined that XRP is not a security for retail sales.
“But here, the SEC has failed to meet its burden to show that such an appeal would ‘materially advance the ultimate termination of the litigation,'” the court filing stated.
SEC’s Appeal for XRP Ruling Lacks Convincing Justification
In a court filing dated October 3, Judge Analisa Torres highlights that the SEC has not offered a compelling justification for how an appeal could alter the court’s decision.
“The SEC’s motion for certification of interlocutory appeal is DENIED, and the SEC’s request for a stay is DENIED as moot. The Clerk of Court is directed to terminate the motion at ECF No. 892.”
Since the announcement, XRP’s price has experienced an approximate 5.54% increase in the last hour. At the time of publication, XRP’s price stands at $0.54.
Torres further outlined that there wasn’t enough evidence to demonstrate that programmatic buyers of XRP were influenced to purchase XRP by the “entrepreneurial or managerial efforts of others.”
However, there could be further developments ahead, as Torres has retained a trial date of April 24, 2024, for the case.
Crypto Industry Keeping Tabs on SEC v Ripple Case
The filing also contended that the SEC did not substantiate its claim that an “average” investor could sift through numerous statements and documents spanning eight years to determine whether to invest in XRP, relying on Ripple’s marketing efforts and public statements regarding its future price potential.
On July 13, Torres issued a ruling that classified XRP as a security for institutional sales while not categorizing it as a security for retail sales.
This decision represented a partial win for both Ripple and the SEC after a nearly two-and-a-half-year-long courtroom battle.
Cameron Winklevoss, co-founder of the crypto exchange Gemini, celebrated the ruling as a “watershed moment,” explaining that it offers greater clarity regarding the SEC’s jurisdiction over cryptocurrency assets.
Meanwhile, the SEC wasted no time in showing its intention to appeal the decision. On August 17, Torres granted the SEC’s request to file an appeal against the decision.
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