Ripple Vs SEC: Judge Torres Doctrine Stands, XRP Secondary Sales Are Not Securities

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As a researcher with a background in crypto law, I’m thrilled to see Judge Amy Berman Jackson agreeing with Judge Torres’ ruling on XRP programmatic sales and secondary sales. This is a significant development for the crypto industry as it sets a precedent for ongoing cases against regulatory bodies like the US SEC.

In the ongoing legal battle between Ripple and the Security and Exchange Commission (SEC), Judge Torres’ ruling that XRP is not an inherent security on its own upholds the principles of programmatic sales and secondary market transactions. Meanwhile, Judge Amy Berman Jackson dismissed the SEC’s claim regarding Binance‘s BNB token secondary sales, establishing that such sales do not constitute securities based on the Howey Test investment contract criteria.

Judge Jackson Agrees With Judge Torres on Crypto Secondary Sales

In a significant development for the crypto sector, District Judge Amy Berman Jackson has aligned with Judge Torres’ viewpoint on XRP‘s programmatic and secondary sales. Specifically, in the case between Binance and the SEC, Judge Jackson has rejected the Securities and Exchange Commission’s stance regarding secondary sales of Binance Coin (BNB) by entities other than Binance itself.

This ruling set by Judge Torres in ongoing crypto cases in the United States is a significant precedent. Companies like Coinbase, Kraken, and Consensys are expected to leverage this judgment in their lawsuits. The SEC lawyers can no longer dispute that this view on secondary sales isn’t established or followed by other judges.

As a crypto investor, I’ve come to understand that Judge Jackson’s ruling suggests a significant shift from the Howey framework in distinguishing between cryptocurrency assets that function as securities and those that do not. In simpler terms, an asset that advances in commercial transactions, is bought and sold among private parties on exchanges, and employed for extended periods, deviates from the Howey test, leaving both the judiciary, the crypto industry, and future investors and traders grappling with an unclear dividing line between securities tokens and non-securities tokens in the market.

What Judge Torres Ruled On XRP Secondary Sales

In the case of U.S. SEC vs. Ripple Labs, Judge Torres ruled that an Institutional Buyer bought XRP directly from Ripple under contract. However, economically speaking, a Programmatic Buyer held a similar position to someone purchasing XRP on the secondary market, unaware of whom or what they were paying for.

Expert: Bill Morgan, a lawyer advocating for XRP, expressed optimism towards the crypto community and XRP holders following the criticism of Judge Torres’ decision on secondary sales in the SEC versus Ripple case. Additionally, this ruling brought clarity regarding the SEC’s potential appeal against Judge Torres’ summary judgment concerning XRP sales. If the SEC chooses to challenge the verdict, they face the possibility of an escalation to the Second Circuit Court.

As a crypto investor, I’m thrilled to share some good news that recently came out of the Second Circuit Court. In a significant decision, the court ruled in favor of Coinbase, stating that secondary sales of cryptocurrencies do not qualify as securities. This judgment adds further weight to Judge Torres’ previous ruling on XRP programmatic sales. Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to announce this major victory for the crypto industry.

XRP Price Eyes $0.50

XRP’s price experienced a significant surge, rising over 1% from its lowest point of $0.470 within the past 24 hours. The cryptocurrency aims to reclaim the psychologically important level of $0.50. Currently, XRP is priced at $0.475, having reached a peak of $0.480 during the session. Notably, trading volume exhibited only a minimal decrease of 3% over the same time frame.

Derivatives traders have been driving most of the demand to purchase XRP recently. According to Coinglass data, there’s been a notable increase of 0.62% in total open interest for XRP futures contracts within the past few hours. This surge is primarily due to substantial buying activity on OKX and BitMEX.

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2024-06-29 11:12