SEC fails to convince judge that Ripple case should be overturned

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SEC fails to convince judge that Ripple case should be overturned

The SEC failed to convince a federal judge that its recent, high-profile 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, said late Tuesday that the SEC had failed to show in its appeal that the decision was sufficiently faulty or problematic. The government said it was hoping to overturn the ruling before a final judgment is entered in the case next spring.

The news effectively represents another victory-albeit a less minor one-for Ripple, and the market responded. The XRP token grew 68%, to just over $0.54, before it settled at $0.53, according to CoinGecko.

The SEC will still be able 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 Ripple...it doesn't mean the SEC 'lost its appeal'...it means that if the SEC wants to appeal, it has to appeal everything at once after the trial... still, some useful clarifications of Torres' opinion.

That news is certainly a disappointment to the SEC, trying to mitigate the damage of its headline-grabbing loss to Ripple by claiming 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 probably received so much breathless attention-- both from pro-crypto advocates and from the SEC itself--today 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 to a market cap of $1.3 trillion in the day following its decision, resulting in a surge in the market value of $73.5 billion. In the same period, XRP surged more than 66%.