The recent decision made by Judge Analisa Torres in the case against Ripple Labs has been criticized by the United States Securities and Exchange Commission (SEC). The SEC stated that “no court followed the decision” during a part of its argument against Coinbase exchange’s request for an appeal.
It is important to note that in July of last year, the judge ruled that the programmatic sales of XRP through exchanges did not qualify as securities offerings. Additionally, the judge determined that XRP itself is not a security, and therefore, sales on exchanges are not considered investment contracts.
In its action against Coinbase, the SEC argues that the platform acts as an unregistered intermediary for “crypto asset securities.” Contrary to Judge Torres’ ruling, the regulator believes that the digital assets listed on Coinbase are securities, and sales on the platform constitute investment contracts.
Furthermore, in its response, the SEC emphasized that “no court followed Ripple.” This claim by the regulator highlights that other courts did not adopt the precedent set in the Ripple case, and therefore, it cannot be applied in the Coinbase case.
Bill Morgan, a lawyer supportive of XRP, commented on this recent development. He noted that if other courts do not adopt the Ripple ruling and the SEC succeeds in other crypto-related cases, Ripple’s victory would be isolated. He stated, “If that happens, even if the case ends up not being considered bad law, Ripple will be comfortable with programmatic sales.”
It is crucial to remember that the opinions expressed in this article, whether by the author or anyone mentioned, are for informational purposes only and should not be considered as financial or investment advice. Investing or trading cryptocurrencies carries a risk of financial loss.