District court judge Analisa Torres has rejected the U.S. Securities and Exchange Commission’s (SEC) motion to appeal its loss against Ripple Labs, the company behind XRP. In her order, Judge Torres stated that the SEC failed to demonstrate controlling questions of law or substantial grounds for differences of opinion. This decision does not signify a complete loss for the SEC, as a trial is scheduled for April 2024 to address remaining issues. Following the news, XRP experienced a price surge of almost 6%.
In July, Judge Torres ruled partially in favor of Ripple, stating that retail sales of XRP did not meet the legal definition of a security. However, the court did find Ripple guilty of violating securities laws by directly selling XRP tokens to institutional investors. The SEC subsequently announced its intention to appeal the decision, deeming certain aspects of the case as “wrongly decided.” Ripple Labs and the SEC have yet to respond to Cointelegraph’s request for comment.
This news marks a significant development in the ongoing legal battle between Ripple Labs and the SEC over the classification of XRP. While the SEC’s motion to appeal has been denied, the upcoming trial in 2024 will address the remaining concerns. The rejection of the appeal motion resulted in a positive market reaction, with XRP prices experiencing a notable increase. Both parties involved will likely continue to fight for their respective positions in this high-profile case.
