Judge Analisa Torres, who issued a landmark summary judgment in July 2023 in the Ripple lawsuit, refused. Request by the US SEC to file a preliminary appeal. This rejection reiterates the previous ruling that retail buyers of the currency did not expect profits from Ripple .
SEC appeal denied In conclusion, the judge said that the SEC's request to certify the interlocutory appeal was denied. Judge Torres noted that the SEC failed in its argument to establish that interlocutory appeal. If approved, it would âtangibly promote an end to the litigation.â The judge stated that the crux of the SEC's argument was about how the court "improperly applied the amateur test" to facts in the undisputed record. As the SEC has repeatedly argued, âhowe must apply to the facts and circumstances available.â
Furthermore, Judge Torres sustained her argument that the issue of the Howey test does not arise in this case. Citing a 2009 lawsuit, she said the circumstances surrounding Howie's testing did not make him appropriate for consideration on an interlocutory appeal.
Moreover, the court categorically listed several reasons why Ripple's automated sales could not lead investors to expect reasonable profits from its own efforts. It is a prerequisite as part of the Howey test. Among the reasons taken into consideration was the lack of promises or offers to automated buyers because Ripple did not know who was buying Ripple. The other reason mentioned is that many automated buyers were completely unaware of the existence of Ripple.
Impact on Other Crypto Cases Additionally, the judge rejected the panelâs argument that âdocumented cases have precedent value for a large number of cases.â Here, âprior valueâ refers to several other lawsuits related to digital assets and different companies. The court concluded that in the event of summary judgment of the Ripple lawsuit. The court's findings come from Howey's direct application to the unique facts and circumstances of this case.
reiterated John Deaton, a lawyer representing thousands of cryptocurrency holders in the lawsuit. The court's findings that the decision was made based on the circumstances surrounding the Ripple lawsuit alone. He explained that the SEC failed to prove how Ripple attempted to spark speculation on the token's price among buyers. Meanwhile, it remains to be seen how Ripple's price will react given the SEC's rejection of the motion to file an appeal.
âLaw of the land,â commented Stuart Alderotti, Rippleâs Chief Legal Officer. That the summary judgment issued by Judge Analisa Torres on July 13, 2023 remains the law of the land. In the ruling issued on July 13. The judge gave Ripple a partial victory when she stated that the programmatic sale of Ripple tokens to retail buyers is not a security.
Investment Contract Whether crypto assets are securities or not depends on how the assets are viewed from the perspective of the terms of investment contracts. He knows the head of the US Securities and Exchange Commission. Gary Gensler, is widely known to have publicly described almost all cryptocurrencies as securities. Which caused suffering to market participants. However, the ruling in the lawsuit against Ripple comes as a reasonable basis for arguing that Gensler may have been wrong.
In the Ripple case, the judge said the automated sales were not made âin accordance with contracts containing lock-in provisions.â Or resale restrictions, compensation terms, or purpose statements.â It commented that the SEC failed to provide evidence that Ripple did not aggressively promote to the general public through its materials.
