In another victory for Ripple, a federal judge has dismissed the SEC's appeal request, paving the way for a final trial in April. Ripple has also recently secured a Singapore license, solidifying its commitment to the Asia Pacific expansion.
There has been yet another win for Ripple Labs in its legal action with the SEC, as a federal judge just dismissed the regulator's request for an appeal. This sets the stage for a final showdown in April regarding the company's operations in the United States. The company also recently obtained its Singapore license, cementing its commitment to expand in the Asia Pacific sector.
On Tuesday, District Judge Analisa Torres declined the U.S. Securities and Exchange Commission's request to appeal her previous ruling in the Ripple Labs case. Judge Torres had determined in July that the sale of Ripple's XRP digital token on public exchanges adhered to federal securities laws as purchasers did not anticipate profit from Ripple's efforts. This was only a partial win for Ripple, as XRP was still considered a security for institutional investors.
The SEC was granted permission to file an interlocutory appeal in mid-August. In response, Ripple had argued that the appeal lacked valid grounds. The tech giant had suggested that the motion would not expedite the case's conclusion and questioned the SEC's intent to continue the lawsuit after an appeal victory. Ripple had then urged the court to deny the SEC's request for a potential stay of proceedings, stating that it didn't meet the necessary standard.
Regarding the motion dismissal, the judge pointed out that the issues in this case involve complex factual and economic analyses, making them unsuitable for an immediate appeal. The SEC, it said, failed to provide conflicting authority or substantial grounds for a difference of opinion. Furthermore, allowing an interlocutory appeal would likely prolong the litigation with multiple rounds of review, delaying the resolution. Instead, the court believes the case should proceed to judgment, allowing a single round of appellate review on a complete record.
The SEC's ongoing litigation against Ripple Labs will therefore continue as scheduled, with the trial set for April 23, 2024.
The regulator retains the option to appeal the case following the trial's conclusion and the issuance of a final judgment. This enables both participants to present their arguments and evidence in a higher court if they are unsatisfied with the trial's outcome, addressing any relevant legal issues or claims.
Judge Torres' decision highlights the complexity of legal disputes in the cryptocurrency space, impacting the classification of digital assets as securities and the application of securities laws. The trial has been a burning topic among the community as it holds significant implications for the regulatory framework for digital assets in the United States going forward, and could serve as an example on a global level.
Ripple Markets APAC Pte Ltd, Ripple's Singapore division, obtained its license from the Monetary Authority of Singapore on Wednesday, allowing the company to continue offering digital payment token services in the region. This development marks another milestone for Ripple, which had already received preliminary approval in June. The XRP issuer's Asia Pacific headquarters have been based in Singapore for the past six years. Ripple is committed to expand its activities in the region, and has actively communicated with local policymakers and regulators from the beginning. Some of its key executives will discuss further plans for responsible trading and development of digital assets at the Elevandi Insights Forum and the Singapore Fintech Festival from November 14 to 17, this year.
Ripple CEO Brad Garlinghouse declared that “Singapore has developed into one of the leading fintech and digital asset hubs striking the balance between innovation, consumer protection and responsible growth.” Notably, about 90 percent of the firm's business activity takes place outside of the United States.
Trading activity surged following the announcement, reaching $1.7 billion in daily trading volume, a notable increase from Tuesday's $900 million, as reported by CoinGecko. XRP is trading at around 52 cents at the time of writing.
Check out our coverage of the entire case:
Mathilde Adam
Mathilde Adam
Mathilde Adam
Mathilde Adam
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