The U.S. District Court of the Southern District, New York, on October 3, rejected the Securities and Exchange Commission’s (SEC) motion to appeal an earlier ruling stating that Ripple’s XRP token is not a security. The presiding judge, Analisa Torres, dismissed the filing, saying that the regulator had failed to prove that there were substantial grounds for a difference in opinion.
Judge Torres stated that the SEC had failed to provide a pure question of law that the court would deliberate on without using the records. She said that arguing the ruling with the motion that the court wrongly applied the Howkey law was unacceptable, hence the rejection.
“The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot,” Torres ruled.
Lack of Substantial Grounds to Overturn Case
Torres stated during the ruling that the SEC had provided no substantial grounds for a difference of opinion to prompt a change of heart for the court. The judge noted that the Terraform cases, which the regulator cited, were two dissimilar cases, and her ruling still did not conflict with the Terraform court’s reasoning.
Furthermore, the court cited the SEC’s motion to appeal the ruling does not add up to the foreseeable termination of the litigation. The court saw the motion as a move that would prolong the required action on the case; hence, it does not meet its burden of an ultimate dismissal of the case.
The SEC stated it would appeal Ripple’s partial victory, citing that the ruling would affect its other cases involving digital assets. The regulator also noted that the verdict did not meet the Howkey law requirements.
SEC to Wait Until Trial Commences
The court ruling meant the SEC would wait until the trial on the XRP security ruling commences on April 23, 2024. As stated in the court document, it would open room for a countermotion against the verdict on December 18.
XRP soared over 3% after the pronouncement on October 3 and is currently trading above $0.53 at press time.
