XRP Rises as SEC’s Attempt to Challenge Ripple Ruling Stumbles
The United States Securities and Exchange Commission (SEC) suffered a setback in its attempt to overturn a recent courtroom defeat against Ripple Labs.
U.S. District Court judge Analisa Torres, who previously ruled that Ripple’s sale of cryptocurrency tokens didn’t constitute an unregistered securities offering, determined that the SEC’s appeal failed to demonstrate significant flaws in her decision. Ripple enjoyed a minor victory as its XRP token surged by 6.8% to around $0.54 before settling at $0.53 following the news. The SEC still has the option to appeal, but only after the case concludes with a trial on remaining issues scheduled for next April.
This development marks a disappointment for the SEC, which sought to address legal concerns created by the initial ruling. The case holds considerable significance as it challenges the SEC’s stance on cryptocurrency companies engaging in illegal securities activities, with Judge Torres previously noting that Ripple’s XRP token “is not necessarily a security on its face.” This decision had a substantial impact on the crypto market, leading to a $73.5 billion increase in market capitalization to $1.3 trillion and a 66% surge in XRP’s value.
Clever Robot News Desk 4th October 2023
