Ripple Vs SEC: Judge Torres Doctrine Stands, XRP Secondary Sales Are Not Securities
Ripple Vs SEC: Judge Torres’ decision that XRP in itself is not a security, the doctrine in programmatic sales and secondary sales stand. Judge Amy Jackson has dismissed the US SEC’s claim on Binance’s BNB secondary sales and cleared that secondary sales do not qualify as securities under the Howey Test investment contracts criteria.
Judge Jackson Agrees With Judge Torres on Crypto Secondary Sales
In a major moment for the crypto industry, District Judge Amy Berman Jackson has agreed with Judge Torres’ doctrine on XRP programmatic sales and secondary sales. Judge Jackson in Binance Vs SEC has dismissed the SEC’s argument concerning secondary sales of BNB by sellers, other than Binance.
This is a major precedent for ongoing crypto cases in the United States. Coinbase, Kraken, and Consensys are likely to use this opinion to gain the upper hand in their lawsuits. The US SEC lawyers now can’t argue that Judge Torres’ opinion on secondary sales wasn’t agreed upon or used by other judges.
Judge Jackson said a crypto asset that moves forward in commerce, bought and sold by private individuals on exchanges, and used in ways over an indefinite period of time, marks a departure from the Howey framework that leaves the Court, the industry, and future buyers and sellers with no clear differentiating principle between tokens in the marketplace that are securities and tokens that aren’t.
Also Read: Ripple XRP Case: Lawyers On Final Ruling Date, Odds Of Appeal & Settlement
What Judge Torres Ruled On XRP Secondary Sales
Judge Torres in U.S. SEC v. Ripple Labs ruled that “An Institutional Buyer knowingly purchased XRP directly from Ripple pursuant to a contract, but the economic reality is that a Programmatic Buyer stood in the same shoes as a secondary market purchaser who did not know to whom or what it was paying its money.”
Pro-XRP lawyer Bill Morgan said it’s good news for crypto and XRP holders after all the criticism of Judge Torres’ reasoning on secondary sales in the SEC v Ripple case. Notably, it also cleared the air on whether the SEC will appeal against Judge Torres’ summary judgment on XRP sales. The regulator also risks escalation to the Second Circuit Court if they appeal against the ruling.
The Second Circuit Court earlier ruled in favor of Coinbase that secondary sales of crypto are not securities, adding weight to Judge Torres’ ruling on XRP programmatic sales. Coinbase CLO Paul Grewal took to X to reveal the major win for the crypto industry.
XRP Price Eyes $0.50
XRP price jumped more than 1% from the 24-hour low of $0.470, eyeing to regain $0.50 psychological level. The price currently trading at $0.475 after hitting an intraday high of $0.480. Furthermore, the trading volume has decreased by just 3% in the last 24 hours.
Most of the buying pressure is coming from derivatives traders. Coinglass data indicate the total XRP futures open interest has surged 0.62% in the last few hours, with massive buying on OKX and BitMEX.
Also Read: Bitcoin ETF Records 4-Day Streak As BlackRock Boosts With $82M Influx
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