HomeMarket NewsJudge's Decision Deals Setback to SEC's Regulation of Cryptocurrency Markets

Judge’s Decision Deals Setback to SEC’s Regulation of Cryptocurrency Markets

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In a ruling that is regarded as a setback for the U.S. Securities and Exchange Commission (SEC), a federal judge has determined that the regulator cannot appeal her decision regarding Ripple Labs. This ruling has implications for the SECโ€™s authority in governing cryptocurrency markets.

Judgeโ€™s Ruling on Ripple Labsโ€™ XRP Token

In July 2023, U.S. District Judge Analisa Torres ruled that the sale of Ripple Labsโ€™ XRP token on public exchanges does not meet the definition of securities. She argued that buyers did not have reasonable expectations of profit based on Rippleโ€™s efforts.

SECโ€™s Request for Appeal Denied

The SEC had sought permission to appeal the findings on programmatic sales and โ€œother distributionsโ€ of XRP as a means of payment. The regulator argued that the appeal would be crucial for a โ€œlarge numberโ€ of lawsuits.

However, the judge rejected the request, stating that there was no substantial difference of opinion regarding her ruling. She also noted that her findings were not in conflict with another ruling by U.S. District Judge Jed Rakoff, who found that the SEC had a plausible claim that Terraform Labsโ€™ Terra USD token was a security when sold on public exchanges.

Implications for Ripple Labs and XRP

The judgeโ€™s decision has immediate implications for Ripple Labs and its XRP token. This ruling provides clarity on the legal status of XRP as a non-security, which could potentially boost investor confidence and market demand for the token.

In response to the news, XRP has risen 4.6% in the past 24 hours, reaching a price of $0.53.

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