The judge denied the SEC’s request to appeal Ripple’s decision.
District Court Judge Annalisa Torres has denied a request by the United States Securities and Exchange Commission (SEC) to appeal the bankruptcy of Ripple Labs, the company responsible for issuing the XRP token.
In an Oct. 3 court order, Judge Torres denied the SEC's request, saying the regulator did not meet its burden of showing that questions of law existed or that there were sufficient grounds for a difference of opinion on the issue.
“The SEC's Motion for Interlocutory Appeals is DENIED, and the SEC's Motion for a Stay is DENIED.”
The decision is not an outright loss for the regulator, especially since Judge Torres has scheduled a hearing for April 23, 2024 to address the remaining issues in the case.
According to data from TradingView, the price of XRP rose about 6% after the news.
On July 13, Judge Torres ruled in favor of Ripple, stating that the retail sale of the XRP token does not meet the legal definition of a security. But the court ruled that Ripple violated securities laws by selling XRP tokens directly to institutional investors.
In August, the regulator moved to appeal that decision, saying there was “substantial reason for differences of opinion” on the rules at hand.
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Ripple Labs and the SEC, however, did not immediately respond to Cointelegraph's request for comment at the time of publication.
The SEC first filed suit against Ripple, which prompted CEO Brad Garlinghouse and co-founder Chris Larson to delist the XRP token in December 2020 to avoid potential legal risks. Following the Torres ruling in July, many crypto companies said they would either relist the token or explore doing so in the future.
The commission has targeted several crypto firms in recent months over allegations of security breaches, including major cryptocurrency exchanges Binance and Coinbase.
In the year On August 29, asset manager Greyscale notched a court victory against the SEC ordering it to review its application for a bitcoin exchange-traded fund on appeal.
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