The SEC states that the Ripple victory ruling regarding XRP does not bear any influence on other cases
The U.S. SEC has criticized Judge Analisa Torres’ decision in the Ripple lawsuit, asserting that “no court has followed the ruling.” This critique formed part of the SEC’s argument against Coinbase’s request for an interlocutory appeal.
In the SEC vs. Ripple case, Judge Torres ruled in July 2023 that programmatic sales of XRP tokens through exchanges did not constitute securities offerings, thus not violating securities laws. This ruling affirmed that XRP is not a security, and token sales on exchanges do not constitute investment contracts.
However, the SEC’s recent complaint against Coinbase alleges that the cryptocurrency exchange has been acting as an unregistered intermediary for “crypto asset securities.” The SEC believes that the digital assets listed on Coinbase’s platform are securities, and sales through the platform are investment contracts. This perspective directly contradicts Judge Torres’s ruling that tokens like XRP sold on exchanges are not securities.
In their latest filing against Coinbase’s appeal, the SEC commented that “no court has followed Ripple.” This argument suggests that other courts have not embraced the legal reasoning or precedent established in the Ripple case, thus rendering it inapplicable to Coinbase’s situation.
This statement implies that the SEC perceives the Ripple decision as an anomaly, possibly lacking in legal influence or validity.
In response to this development, pro-XRP lawyer Bill Morgan suggested that if other courts do not adopt the ruling in the SEC vs. Ripple case and the SEC prevails in its other major crypto lawsuits, Ripple’s victory concerning programmatic sales would remain isolated.
In essence, this would imply that Ripple could proceed with its programmatic sales without registering. However, it’s important to note that the ruling might not establish a binding legal precedent for other entities within the crypto industry.
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