New ruling in the SEC vs Ripple case doesn’t favor the SEC, allowing Ripple’s case to progress. SEC can still appeal post the April 2024 trial.
- The SEC has failed to block further progress in the Ripple case.
- The district judge of the Southern District of New York, Analisa Torres, rejects the SEC’s interlocutory appeal.
- Despite this, the SEC can still attempt an appeal after the trial date set for April 2024.
- The SEC is considering a change of strategy for its case against Ripple.
In July 2023, the district judge of the Southern District of New York, Analisa Torres, ruled that, although the cryptocurrency company Ripple had violated federal securities laws by selling its XRP token to institutional investors, it had not acted in the same way by making XRP available to retail customers through the use of exchanges. Following the decision, the SEC announced its intention to file an interlocutory appeal and try to stop further decisions pending its review.
The SEC rejected
Now, Judge Torres has pointed out that the SEC has failed to show the existence of crucial legal issues or significant differences of opinion that would have justified the appeal.
Judge Torres’ decision, however, does not represent a total loss for the SEC. Torres has set a trial date for April 2024 to examine other unresolved issues in the case.
After this date, the SEC will still have the opportunity to appeal. In its case against Ripple, the SEC sought to apply the Howey Test, a criterion used to determine whether a particular transaction constitutes an offer of securities. The Commission may now be forced to change its strategy in an attempt to succeed in its case against Ripple.
