XRP is now the only altcoin in the US with clear regulatory definitions in the US.
This clarity comes after the motion for interlocutory appeal from the SEC was denied in the ongoing legal battle with Ripple.

With the court’s rejection of the United States Securities and Exchange Commission (SEC) motion for interlocutory appeal, the XRP coin now seems to be the only altcoin with clear legal non-security status in the U.S. 

Once again, Judge Analisa Torres dealt a severe blow to the SEC in its legal brawl with payment company Ripple Labs. According to her analysis, the SEC fell short in demonstrating that there were dominant questions of law or palpable grounds for variant perspectives. Therefore, She ruled that “the SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot.”

The rejection of the SEC’s interlocutory appeal request further weakens the regulator’s defense stance although it does not mark an outright win for Ripple. However, the verdict solidifies XRP’s position amongst other altcoins including the second largest cryptocurrency by market capitalization Ethereum (ETH). 

John E. Deaton, a pro-XRP lawyer and the founder of CryptoLaw reiterated in a recently held interview with Digital Perspectives that this latest ruling is a crucial milestone for the XRP coin.

Ripple vs SEC: What Next for the SEC?

With the end clearly in sight for the markets regulator regarding some aspects of its charges against Ripple Labs and its executives, Chris Larsen and Brad Garlinghouse, the next course will be to hang onto the aspects where it still stands a chance.

With trial data scheduled for the second quarter of next year, the SEC will be looking to snatch a win by proving that Garlinghouse and Larsen knowingly helped facilitate the sales of XRP to investors with expectations of dishing out returns. Notably, market experts including Deaton have pointed out the flaw in this argument, and with XRP now deemed a non-security, the chances of the SEC winning on this front are also slim.

Both the market regulator and Ripple are preparing for this big trial event with the reshuffling of veterans in their legal team. It is worth noting that based on the individual calendars submitted by both parties, Judge Torres has set April 23, 2024, as the definitive date for the trial in the XRP lawsuit. 

This date is largely dependent on the compliance of both parties in terms of the submission of the document deadline which has been stipulated for December 4, 2023. While we await the trial, XRP remains the only altcoin recognized in the U.S. as non-security. 

Another crucial next step for the SEC, as is being speculated in the community, might be to consider the option of a settlement. However, with the odds currently not in its favor, legal experts have predicted how improbable this course might be for the Gary Gensler-led commission.

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Filed under: Bitcoin - @ October 6, 2023 9:24 am