New York, October 4, 2023 - In a significant turn of events for the cryptocurrency world, a federal judge has denied the U.S. Securities and Exchange Commission (SEC) the opportunity to appeal her recent decision involving Ripple Labs, a ruling that has been perceived as a major setback for the regulatory body's efforts to oversee cryptocurrency markets.
On July 13, U.S. District Judge Analisa Torres, presiding in Manhattan, issued a groundbreaking decision stating that the sale of Ripple's XRP digital token on public exchanges was in compliance with federal securities laws. The key reasoning behind her judgment was that purchasers of XRP had no reasonable expectation of profit based on Ripple's efforts. This verdict marked a significant milestone in the ongoing debate about whether cryptocurrencies should be classified as securities.
However, the aftermath of this decision has witnessed the emergence of rumors within the XRP community. These rumors suggest that Ripple Labs and the SEC might be on the verge of reaching a settlement outside of the courtroom, hinting at a potential turning point in the long-standing legal battle.
The SEC, in response to the verdict, had sought permission to appeal Judge Torres' findings, particularly focusing on "programmatic" sales of XRP and the usage of XRP as a means of payment for services. They argued that an appeal was essential as it would bear relevance to a "large number" of ongoing lawsuits. Nevertheless, Judge Torres determined that there was no "substantial ground for difference of opinion" regarding her findings and, consequently, did not believe that an appeal would materially advance the case toward a resolution.
Moreover, she emphasized that her ruling did not contradict the decision made by U.S. District Judge Jed Rakoff in Manhattan on July 31. In Judge Rakoff's ruling, he had stated that the SEC had a "plausible claim" when it came to Terraform Labs' Terra USD token, which was deemed a security when sold on public exchanges. Judge Torres clarified that Judge Rakoff was evaluating Terraform's motion to dismiss the SEC case and, in this context, was obligated to consider all reasonable inferences in favor of the regulator.
As things stand, a trial date for the Ripple case has been set for April 23, 2024, and it remains a closely watched legal battle in the cryptocurrency community.
In response to these developments, the SEC has not issued any comments, and lawyers representing Ripple, including Chief Executive Brad Garlinghouse and co-founder Chris Larsen, have not immediately responded to inquiries.
The SEC's lawsuit, filed in December 2020, had accused Ripple of unlawfully raising more than $1.3 billion through an unregistered securities offering via the sale of XRP. The regulatory body has long asserted that many digital assets, including cryptocurrencies, should be treated as securities, putting them under its jurisdiction, akin to stocks and bonds. This viewpoint has led the SEC to take legal action against various entities in the cryptocurrency space, including Binance, the world's largest cryptocurrency platform, and Coinbase, the largest U.S. cryptocurrency platform.
Judge Torres, in her July decision, concluded that only certain XRP sales violated federal securities laws.
In other news, the cryptocurrency world continues to evolve rapidly, with projects like Rencom Network gaining momentum. Rencom Network is a blockchain-powered platform that offers more than just tokens; it provides a realm of empowerment and substantial rewards. It enables users to explore a vast array of opportunities beyond traditional properties, including residential and commercial spaces, as well as everyday items such as bicycles and construction equipment. Ownership on Rencom Network takes on a dynamic twist, allowing for seamless asset utilization and rewarding outcomes. The network's expansion into over 130+ countries, including the United States of America, has been marked by its native token, RNT, which recently saw a staggering increase of over 3000% in value within the past week. In a significant development, Rencom Network has received internal confirmation, from an insider source, that their native token, RNT, has been granted a non-security status by their legal team. This development adds another layer of significance to the network's recent achievements and highlights the ongoing innovation within the cryptocurrency space.