The US Securities and Exchange Commission (SEC) has lost its motion to appeal an earlier ruling that declared Ripple‘s cryptocurrency (XRP-X) not a security.

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According to US District Court Analisa Torres, the SEC has failed to convince the court why the ruling that sales of XRP directly to investors wasn’t a security offering should be overturned.

XRP price rose more than 8% on Tuesday night following the news, trading to highs of $0.54. On-chain data by Santiment shows that the increased positivity around XRP catapulted community discussion on what’s next for Ripple vs. SEC to levels last seen in mid-July.

At the time of writing, XRP/USD was changing hands near $0.52 with its price up 3.6%.

What does this mean for SEC vs. Ripple case?

Judge Torres’ rejection of SEC’s interlocutory appeal request is another win for Ripple Labs, the San Francisco-based blockchain company behind XRP that has maintained since the beginning of this court battle that their crytocurrency token is not a security.

More so, it’s a reflection of the broader criticism against the regulator’s seemingly blatant categorization of nearly all cryptocurrencies as securities. But pro-crypto lawyer John E. Deaton believes the judge’s latest decision makes it “clearer” that other than Bitcoin, XRP is the other crypto asset with “legal clarity.”

On what happens next after this ruling, experts opine that the SEC can still pursue an appeal. However, this will now have to wait until the case against Ripple finalizes in 2024.

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