SEC v. Ripple EXPLOSIVE Update: Judge Backs Secondary Sale View
Mustafa Mulla29 Jun 20242 min read
Recent remarks from Judge Amy Berman Jackson in the SEC v. Binance case offer new insights into the SEC v. Ripple decision. Pro-XRP lawyer Bill Morgan has highlighted key points from Judge Jackson’s ruling that could significantly impact the cryptocurrency community.
What did the judge say, and why is it such a big deal for the future of cryptocurrency? Read on to find out!
Ripple Gets (Much-Needed) Legal Boost
Judge Amy Berman Jackson, in her ruling on the SEC v. Binance case, provided important insights that support the SEC v. Ripple decision. She found Judge Torres’ observations on the nature of the token itself to be “clarifying and persuasive.” This support suggests that Judge Torres’ interpretation is gaining acceptance among judges.
A key issue in crypto regulation is applying the Howey Test, particularly its third part, which assesses whether investors expect profits based on the efforts of others. Judge Torres’ reasoning in the Ripple case made a clear distinction between institutional and programmatic token buyers.
Judge Jackson preferred this approach over Judge Rakoff’s in the Terraform case, which did not make such a distinction.
Ripple’s Increasing Influence
Pro-XRP lawyer Bill Morgan points out that Judge Jackson’s comments highlight the growing influence of the SEC v. Ripple decision. This rising judicial support could strengthen Ripple’s position in its ongoing legal battles and might affect other cases involving digital assets.
Judge Jackson’s endorsement sets an important example for other crypto cases in the U.S. Companies like Coinbase, Kraken, and ConsenSys may use this opinion to bolster their positions in their lawsuits.
With Judge Jackson’s backing, the SEC can no longer argue that Judge Torres’ views on secondary sales are unsupported by other judges. This development marks a significant shift in the legal landscape for cryptocurrency.
Binance vs SEC Lawsuits
In June 2023, the SEC, led by Gary Gensler, sued Binance, accusing the exchange of offering unregistered securities and operating illegally in the U.S. Binance and its CEO, CZ, sought to dismiss the lawsuit about three months later, arguing that the SEC had overstepped its legal bounds.
Meanwhile, CZ is serving a four-month prison sentence for violating money laundering laws. Despite these challenges, Binance remains the largest cryptocurrency exchange worldwide, with over 200 million users and managing $100 billion in assets.
