In a significant setback for the SEC, District Judge Analisa Torres rejected their appeal in the landmark case against Ripple, the company behind the cryptocurrency XRP. Emphasizing clarity and precision, Judge Torres highlighted that the SEC had not provided sufficient evidence suggesting predominant legal issues or indicating substantial grounds for diverging opinions.
Retail vs Institutional XRP Sales: Distinct Differences
Earlier in July, Judge Torres drew a clear distinction between different channels of Ripple’s XRP sales. While Ripple’s direct sale of XRP to institutional investors was deemed a violation of federal securities laws, its programmatic sales channel, making XRP accessible to retail consumers via exchanges, was found to not infringe any regulations. This crucial judgment raised questions about the SEC’s ability to comprehensively regulate cryptographic assets.
Responding promptly to this July verdict, the SEC revealed its intentions to initiate an interlocutory appeal, seeking to pause any further decision. Their hope was to obtain a review by an appellate court of Judge Torres’ decision, a move that is now effectively blocked with the recent rejection.
Interestingly, the impact of this latest development has been evident in the cryptocurrency market, with XRP experiencing a 3% increase after the announcement. As legal nuances continue to unfold, the crypto community awaits the scheduled trial in April 2024 for further clarification on unresolved matters.