US District Judge Analisa Torres denied the SEC’s request to appeal part of the judgment. A few months ago, Torres ruled that trading XRP on secondary markets does not qualify as securities transactions. At the same time, the judge agreed with the regulator’s arguments that sales of XRP to institutional clients constituted unregistered offerings of securities, therefore, such sales of XRP violated federal laws.
The SEC attempted to appeal Torres’ decision regarding retail trading of XRP. The regulator argues that this sets a dangerous precedent for the application of securities laws to crypto assets. However, the judge, rejecting the SEC’s appeal, explained that it did not meet the legal standards for an early appeal.
“If a buyer purchases XRP on an exchange with the intention of selling the XRP for a profit, it appears that he would have purchased these coins with the expectation of profit. However, this motive does not depend on the entrepreneurial or managerial efforts of others,” Judge Torres explained.
The dismissal of the SEC’s appeal is a significant victory for Ripple, which has been in litigation with the regulator since late 2020. The agency claims that the sale of more than $1.3 billion of XRP in 2013 violated securities and investor protection laws. The SEC has not yet commented on the court’s decision, so it is unclear whether the Commission will appeal the decision. A new trial is scheduled for April 2024.
Recently, Ripple CEO Brad Garlinghouse said that the company has already spent more than $100 million on the legal battle with the SEC. Despite the high costs, Garlinghouse is confident that Ripple will win a complete victory in court.
Source: Bits
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