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Debashree Patra
Debashree Patra
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- Jun 29, 2024 09:46 UTC
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Crypto Wins! Judge Busts SEC Argument, Upholds Ripple XRP Ruling in Binance Lawsuit
A US judge agreed with a previous ruling that Ripple's XRP is not a security, which is a win for Ripple and the crypto industry.
This decision could be used as an example in other crypto lawsuits involving secondary sales of cryptocurrencies.
While this is a positive development for Ripple, the SEC could still appeal and the final outcome is not yet determined.
That’s what you call a landmark ruling!
In a significant win for the cryptocurrency world, Judge Amy Berman Jackson has affirmed Judge Torres’ groundbreaking decision on Ripple’s XRP. This ruling, long anticipated by the crypto community, reinforces the stance that XRP itself is not a security. It also upholds that programmatic and secondary sales of XRP do not qualify as investment contracts under the Howey Test.
Read on to unpack the judge’s ruling and its potential impact.
Exploring the Win
District Judge Amy Berman Jackson has given a nod to Judge Torres’ decision, particularly endorsing the non-securities status of XRP’s programmatic and secondary sales. This validation represents a major triumph not only for Ripple but also for the entire cryptocurrency sector.
Judge Jackson’s ruling sets a crucial precedent for high-profile crypto litigation cases involving entities such as Coinbase, Kraken, and ConsenSys. The judgment supports the argument that secondary sales of cryptocurrencies—such as Binance’s BNB—do not constitute securities, potentially influencing the outcomes of these ongoing cases.
A New Precedent for Crypto Transactions
In her decision, Judge Jackson aligns with the Second Circuit Court’s stance that secondary transactions involving crypto assets are not securities. This precedent strengthens the position of crypto businesses challenging SEC regulations.
Pro-XRP lawyer Bill Morgan has praised the ruling as a positive development for XRP holders and the crypto community. The decision also clarifies that the SEC’s potential appeal against Judge Torres’ summary judgment could lead to further escalation to the Second Circuit Court.
Morgan explains that in the SEC vs. Binance case, Judge Amy Berman Jackson rejected the SEC’s argument that a crypto token itself is always an investment contract. She found the Ripple and Telegram cases’ views on this issue to be “clarifying and persuasive.” He emphasizes that Judge Torres’ decision on XRP not being a security is now seen as a legal example in court.
XRP Price Snapshot
XRP has risen since Judge Jackson’s judgment. XRP gained more than 1% from a 24-hour low of $0.470 to $0.475 and aims to recapture $0.50. However, the trading volume dropped 3% yesterday, with derivatives traders buying heavily. Coinglass shows XRP futures open interest rose 0.62% due to large buying on OKX and BitMEX.
It’s Not Over Yet…
Although Ripple has scored legal victories, the SEC might still win on whether XRP is a security. The SEC could appeal if the ruling favors Ripple, and a new administration or SEC Chair might shift the regulatory stance on XRP. Moreover, after receiving the latest briefs, lawyers like Fred Rispoli expect Judge Torres to rule on remedies and injunctions within 60–90 days. This timeline may avoid expert witness rulings.
Read Also: Ripple Explores New Horizons with RLUSD Stablecoin and Potential XRP ETF
Looks like the SEC might have to rethink its approach. Let’s see what’s next!
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