This ruling marked a crucial victory for Ripple, instantly boosting XRP’s price by almost 5%. When Ripple achieved its first victory, although a partial one, in July, the price of XRP spiked from $0.46 to $0.93 in just 10 hours, a stunning 100%+ increase.
A federal judge in the United States, Analisa Torres, rejected the US Securities and Exchange Commission’s (SEC) appeal in a significant legal battle against Ripple, the company associated with the XRP token.
The judge dismissed the SEC’s appeal, stating that the commission needed to present a clear legal question that could be swiftly decided without extensive review of records. The court also rejected the regulator’s claims of substantial differences in opinion, emphasizing that vague references to potential disagreements between courts were insufficient. The SEC’s mention of the Terraform Lab case to support its appeal was also dismissed because it didn’t align with the court’s reasoning and lacked relevance to the current case.
🚨BREAKING: Judge Torres has REJECTED the @SECGov’s Motion to Appeal the @Ripple Ruling. Docs to come.
— Eleanor Terrett (@EleanorTerrett) October 3, 2023
This ruling marked a crucial victory for Ripple, instantly boosting XRP’s price by almost 5%. Ripple’s CEO, Brad Garlinghouse, celebrated the win, highlighting that the court granted the SEC exactly what they had requested.
However, the ruling caused debate among lawyers and crypto enthusiasts. Crypto lawyer Jeremy Hogan described the court’s decision as a disaster for the SEC. Another Twitter commenter argued that the ruling didn’t signify the SEC’s complete loss but implied they had to appeal everything at once after the trial.
The SEC’s motion for interlocutory appeal DENIED.
Which means, the case either goes to trial in April, or goes away.
AND, this Order allowed the Judge to explain parts of her ruling even better, making appeal that much harder for the SEC to win.
Disaster for the agency. https://t.co/y1Gz8LolrG pic.twitter.com/hkktKMD4Ut
— Jeremy Hogan (@attorneyjeremy1) October 4, 2023
Although the SEC’s case against Ripple has been dismissed, the regulatory agency remains committed to pursuing legal action against Ripple’s CEO Brad Garlinghouse and co-founder Chris Larsen. Their trial is scheduled to commence on April 23, 2024, with pre-trial preparations slated to kick off by December 4, 2023, aimed at establishing a clear path for the upcoming legal proceedings.
How Will the Judge’s Rejection Affect the Price of XRP?
When Ripple achieved its first victory, although a partial one, in July, the price of XRP spiked from $0.46 to $0.93 in just 10 hours, a stunning 100%+ increase. Many investors were persuaded by this crypto’s quick rise that it was just the beginning of a promising trend. However, the entire price increase was later reversed, and by August 17, XRP had returned to its earlier levels.
The dismissal of the case against Ripple is not merely a headline; it signals a positive outlook for both Ripple and XRP. The cryptocurrency network has recently made strategic moves to increase its regulatory influence, form important alliances, and acquire companies. It has also been revealed that some American banks are looking into incorporating Ripple’s network into their banking systems. Notably, the central bank of France plans to use the Ripple blockchain as the basis for its digital currency.
It is anticipated that the combined effect of these developments will affect the price of XRP. The significance of the SEC’s announcement cannot be overstated, especially considering their prolonged involvement in the case since 2020. Following the news, XRP experienced an immediate 5% surge, and despite subsequent bearish movements, it appears poised for sustained growth.
Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
