SEC fails to convince judge that Ripple case should be overturned

SEC fails to convince judge that Ripple case should be overturned

The United States SEC failed to convince a federal judge that its recent courtroom loss to Ripple Labs should be overturned, according to a court ruling issued Tuesday.

U.S. District Court Judge Analisa Torres, who ruled in July that Ripple's sale of a cryptocurrency token directly to consumers did not constitute an illegally unregistered securities offering, wrote late Tuesday that the SEC had failed to show in its appeal that the decision was sufficiently faulty or problematic. The regulatory agency hoped to overturn the decision before a final judgment is entered in the case next spring.

The news effectively constitutes another victory-albeit a less minor one-for Ripple, and the market responded. CryptoGecko reported that the company's XRP token surged to just over $0.05, before settling to $0.53 at writing.

The SEC will have the chance to appeal Judge Torres' decision, but only once the case formally ends after a trial on remaining issues is held next April.

don't get too excited about the denial of SEC's interlocutory appeal in doesn't mean the SEC 'lost its appeal' means that if the SEC wants to appeal it must appeal everything at once after the trial... still, some useful clarifications of Torres' opinion.

That news is certainly a disappointment to the SEC, which was hoping to mitigate the damage of its headline-grabbing loss to Ripple by arguing that Torres' decision created so many 'knotty legal problems' that it ought to be reviewed by a federal appeals court before the case is concluded.

The case has likely received so much attention, both from pro-crypto advocates and the SEC itself, because it represents the most full-throated refutation to date of the SEC's current position that most cryptocurrency companies are participating in illegal securities schemes.

The crypto market surged $73.5 billion to $1.3 trillion in the day after the judgement, amounted to a market capitalization of $1.3 trillion. In the same period, XRP surged more than 66%.