In a significant win for the cryptocurrency sector, Judge Amy Berman Jackson upheld Judge Analisa Torres’ landmark ruling on the XRP case involving Binance and the SEC. The decision reaffirms that XRP, the cryptocurrency native to Ripple, is not classified as a security. It further emphasizes that both programmatic and secondary sales of the token do not meet the criteria for investment contracts under the Howey Test.
The Binance vs. SEC verdict marks a pivotal moment, underscoring Judge Torres’ previous findings regarding XRP’s regulatory status. Specifically, the court ruled in favor of Binance, determining that secondary market sales of BNB do not constitute securities. Despite this victory, the court has maintained most charges against Binance due to insufficient clarity in its arguments before Judge Jackson. Nevertheless, the ruling dismissed allegations related to secondary sales under the SEC’s scrutiny, referencing a precedent set by Ripple’s XRP-related decision in June 2023.
Bill Morgan, a prominent advocate for XRP, applauded the court’s decision as highly favorable for XRP holders and the broader cryptocurrency community. He noted Judge Jackson’s alignment with Judge Torres’ nuanced differentiation between institutional investors and retail programmatic buyers, contrasting it with Judge Rakoff’s stance in the Terraform case. This deviation from Judge Torres’ reasoning appears to have unsettled @CGasparino, who previously contested Judge Torres’ interpretation based on conflicting legal insights.
In summary, the ruling signals a potential decline in SEC challenges against Ripple concerning programmatic sales of XRP, suggesting a more favorable legal landscape ahead. These developments underscore the evolving regulatory framework surrounding cryptocurrencies, impacting market participants and investors alike.
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Disclaimer: The opinions expressed in this article, including those of individuals mentioned, are provided for informational purposes only and do not constitute financial or investment advice. Investing in cryptocurrencies involves inherent risks and potential financial losses.
