A judge in the U.S. District Court for the Southern District of New York has rejected the Securities and Exchange Commission’s (SEC) motion to file an appeal, arguing that the regulator failed to present a substantial basis for it. The price of XRP reacted with an 8% rise.
Judge Analisa Torres of the Southern District of New York has rejected the SEC’s motion for an interlocutory appeal of its ruling in the case against Ripple Labs. The judge believes that the court lacks sufficient grounds to review the case as the regulator has failed to prove the existence of key legal controversies or substantial differences on the matter.
The SEC’s lawyers planned to appeal the court’s ruling that XRP wasn’t a security when sold to retail investors. And Ripple Labs’ lawyers drew the judge’s attention to the fact that the regulator’s intentions didn’t comply with the established legal procedure.
However, the decision regarding the asset’s status when sold to institutional investors is yet to be made. The court hearing is scheduled for April 23, 2024.
The price of XRP reacted to Torres’ decision with an 8% jump. The rise in the value triggered a massive sell-off as holders began to lock in profits. According to CoinGecko, XRP rose to $0.55 momentarily, and as of 10:00 (GMT+3), October 4, the asset was trading at $0.53.
The confrontation between the SEC and Ripple has been going on for the third year. However, litigation with the regulator doesn’t prevent the company from developing and strengthening its status as one of the world’s largest providers of blockchain technologies.
