In a recent legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs over the classification of XRP as a security, a surprising revelation has emerged. While the XRP lawsuit verdict seemed to open up new possibilities in the United States, it has also given rise to lingering questions. Needless to say, people aren’t happy.
Is Judge Torres going to revise her decision? Let’s explore.
In July 2023, Judge Analisa Torres made a significant ruling, stating that Ripple’s XRP token sales were not illegal securities transactions, except when sold to institutional buyers. However, another ruling by Southern District of New York Judge Jed Rakoff, allowing the SEC to proceed with its lawsuit against Terraform Labs and founder Do Kwon, has cast doubt on the previous decision.
This has prompted attorney Bill Morgan to voice concerns about Ripple’s on-demand liquidity (ODL) linked sales, which were previously brought to light by the company’s CTO, David Schwartz. With the controversial verdict now set to be reviewed by Judge Torres, there is renewed hope for a clearer understanding of XRP’s regulatory status in the United States.
Read More: SEC’s Double Standards Exposed: Ethereum Favoured, Ripple Snubbed?
Amid the aftermath of the XRP lawsuit, attorney Bill Morgan has raised pertinent questions about the classification of Ripple’s on-demand liquidity (ODL) sales as securities. The attorney wonders whether ODL sales, involving institutional clients briefly holding XRP tokens for cross-border payments, should be considered securities under the Howey principles.
The primary use of Ripple ODL transactions is for swift payments and not as an investment vehicle, creating uncertainty surrounding their regulatory status. As the XRP price faces a steady decline in recent days, the ongoing debate about its legal classification adds further complexity to the cryptocurrency’s future.
With the rapid evolution of the cryptocurrency market, regulatory clarity is of utmost importance. The XRP lawsuit has brought these questions to the forefront, with potential ramifications for the entire digital asset industry.
Whether XRP’s classification as a security remains unchanged or undergoes a reevaluation, one thing is certain – the debate is far from over.
What do you think about the SEC’s XRP ruling? Do you think it will be revised?
It seems like ADA, Cardano’s native token, has successfully retested its crucial support and is…
UNI, Uniswap's native token, appears bullish and is poised for massive upside momentum after a…
The crypto market is always shifting based on global money trends, but a new debate…
XRP holders are finding themselves at a crossroads as recent market trends raise questions about…
Bitcoin, the flagship cryptocurrency, has taken a hit with a 5% drop in its price.…
Amid market uncertainty, Dogecoin (DOGE), a popular and the world’s largest crypto meme coin, appears…
