Ripple's XRP gains momentum as judge denies appeal

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Ripple's XRP gains momentum as judge denies appeal

Investors were buoyed by the U.S. SEC's appeal of the US SEC's suit against Ripple on Tuesday. The judge said that the sale of XRP tokens on exchanges does not constitute an investment contract.

This summer, Ripple's partial victory over the SEC led to celebrations across the crypto community.

But Judge Analisa Torres, of Southern District of New York, has cemented the win by denying the request for leave to appeal by the Federal Court of Appeals.

But that does not mean the end of the longstanding fight between the two - a trial date has been set for April 23, 2024 for the remaining matters to be settled in court.

The XRP token opened after the news of Torres' denying the SEC's appeal.

Over the past month, it's up 5% to $0.53, bringing its gains to 7.3% over the past seven days. Ripple's token, XRP, facilitates transactions on its network.

In 2020, the regulatory agency filed a lawsuit against Ripple alleging that the company operated an unregistered securities offering.

Programmatic sales, which encompass sales of XRP to the general public through exchanges or trading algorithms, don't constitute investment contracts, Torres said.

While observing a dramatic increase in the price of XRP while browsing an exchange, Torres said, ''I'm unaware of Ripple's existence.

The SEC conducts the Howey test to determine whether or not something is a security. It is made up of several prongs to determine this.

Ripple's executive chairman, Chris Larsen, and Ripple CEO Brad Garlinghouse will be the focus of the trial. The pair are liable for illegal securities sales to institutional investors - involving the sale of millions of dollars of XRP.

Investing in XRP could be an attractive investment option for institutional investors, who could expect substantial returns from investing in the common enterprise.

Adam Morgan McCarthy, DL News' London-based Markets Correspondent, is responsible for the London-based Markets Division of DL News.