XRP Ruling: Expert Zeroes In On the Sole Concern With Judge Torres Ruling on XRP

The dialogue arose following remarks made by renowned crypto YouTuber Wendy O concerning the significance of XRP’s non-security classification in the secondary market. Wendy O highlighted the broader implications of this classification for the crypto and NFT industry.

What Transpired

The issue is that this ruling was in a district court, so it doesn't set a binding precedent for other courts. But if the SEC loses to Ripple in the Second Circuit, it could create a binding precedent over other courts, thus discouraging the SEC from appealing the Ripple case. https://t.co/6jMdxWhql7
— mickle (@xrpmickle) August 28, 2024

An important issue that was raised is that the district court ruling lacks the authority to set a binding precedent. Should the SEC decide to appeal and lose the case against Ripple in the Second Circuit Court of Appeals, the ensuing decision would carry weight across other jurisdictions. This potential outcome may dissuade the SEC from pursuing an appeal, as it could substantially impact the regulator’s future litigations against entities operating in the crypto space.

XRP Market Sales

It was emphasized that Judge Torres’ ruling did not cover the secondary market sales of XRP, restricting the SEC from appealing this particular aspect of the decision. The focus of the case centred on Ripple’s sales of XRP, with the judge specifically addressing programmatic sales and other distributions of XRP as non-securities transactions. Nonetheless, the judge did find Ripple in violation of the law due to its historical institutional sales of XRP.

Judge Torres made no ruling on secondary market sales of XRP so there is no ruling to appeal.
— bill morgan (@Belisarius2020) August 28, 2024

Furthermore, the ruling by Judge Torres has been leveraged as a precedent by other district courts. For instance, in the SEC v. Binance lawsuit, Judge Amy Jackson cited Judge Torres’ decision to dismiss the regulator’s allegations regarding secondary market sales of BNB.

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Daniel Abang

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