Judge rejects SEC’s motion to file an appeal against Ripple ruling

Regulation

District court judge Analisa Torres has rejected the United States Securities and Exchange Commission’s (SEC) motion to appeal its loss against Ripple Labs, the company responsible for issuing the XRP (XRP) token. 

In an Oct. 3 court order, Judge Torres denied the SEC’s motion, claiming that regulator failed to meet its burden to show that there were controlling questions of law or that there were substantial grounds for differences of opinion on the matter. 

“The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot.”

District court judge Analisa Torres denied the SEC’s motion to file an appeal. Source: CourtListener 

Notably, the decision isn’t an outright loss for the regulator, as judge Torres scheduled a trial for April 23, 2024 to address the remaining issues on the matter. 

The price of XRP surged nearly 6% immediately following the news, according to data from TradingView.

The price of XRP gained nearly 6% following the rejection of the SEC’s motion. Source: TradingView

On July 13, Judge Torres ruled partially in favor of Ripple, declaring that retail sales of the XRP token did not meet the legal definition of a security. The court did find however, that Ripple had violated securities laws by selling XRP tokens directly to institutional investors.

Following the ruling, the SEC announced that it would be seeking an appeal of the decision, writing in a seperate lawsuit that certain portions of the case were “wrongly decided” and that it would be seeking further review. 

Ripple Labs and the SEC but did not provide an immediate response to request for comment by Cointelegraph at the time of publication. 

This is a developing story, and further information will be added as it becomes available.