SEC Crypto Appeal Rejected: Judge’s Decision Stuns the Market

Key Points:

• US District Judge denies SEC’s appeal request in XRP case.
• XRP surges 6.3% after ruling, up 58% this year.
• Impact on crypto industry’s stance on securities regulation.

US District Judge Analisa Torres has denied the US Securities and Exchange Commission’s (SEC) SEC crypto appeal XRP, does not constitute a security when sold to the general public.

The ruling, which came on Tuesday in Manhattan federal court, marks a pivotal moment in the ongoing legal battle between the SEC crypto appeal and Ripple.

XRP Case Update

The SEC crypto appeal needed Judge Torres’s permission to appeal her ruling as it was not considered a final judgment. Additionally, the SEC crypto appeal was seeking to put its suit against Ripple, which alleges the offering of unregistered securities, on hold while the appeal process was pending.

XRP’s Remarkable Surge

Following the denial of the SEC crypto appeal’s request to appeal, Ripple’s XRP token experienced a notable surge, climbing as much as 6.3%. It eventually settled near 54 cents as of 7:20 p.m. in New York on Tuesday. This decision brought relief to XRP investors and marked a 58% gain for the token this year, outpacing a 33% advance in a benchmark index of the top 100 digital assets.

Judge Torres’s ruling was widely seen as a victory for the cryptocurrency industry, which has been adamant in its resistance to classifying digital assets as securities subject to regulatory oversight. In her July 13 decision, Judge Torres made a crucial distinction between sales of XRP to institutional investors, which she deemed subject to federal securities law, and sales to the general public on cryptocurrency exchanges.

Ripple had vehemently opposed the SEC crypto appeal’s request to appeal, arguing that the agency was rushing the process and addressing a legal question that has broad implications for the entire digital asset industry.

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