Mickle (@xrpmickle), a well-known crypto investor, recently shared his opinion on the XRP lawsuit and a potential reason why XRP cannot be classified as a security.
In a video posted on X, Mickle explained that Judge Analisa Torres’s ruling from July 2023 tanked the SEC’s case against Ripple.
The aforementioned ruling determined that XRP itself was not a security, although it can be sold as a component of an investment contract. The Judge also ruled that non-institutional XRP sales did not constitute securities offerings. The only victory the SEC walked away with was the ruling that institutional XRP sales counted as unregistered securities sales.
The Failure of the SEC Case
Mickle argues Judge Torres’s ruling undermines the SEC’s entire case. According to Mickle, Judge Torres labeled the opinion on XRP’s security status as “Dicta.” The term Dicta refers to statements, comments, or observations made by a judge in a court’s opinion that are not essential to the decision on the case.
These remarks are often included in judicial opinions to illustrate a point, provide context, or express a personal view of the judge. Despite lacking binding authority in other courts, Dicta can be used as a persuasive authority and sometimes influence future legal reasoning and decisions.
Although Mickle claimed the SEC lawsuit against Ripple was strategically designed to label XRP as a security, he contended that the SEC will likely refrain from appealing Judge Torres’ decision on XRP’s security status.
He reasons that the SEC would not file an appeal on a weak case. He argues that XRP’s security status is the weakest part of the SEC case. Although the security status was the SEC’s initial goal, the ruling has thrown a wrench in the works. Thus, it would be absurd for the regulatory agency to challenge this decision.
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The SEC Won’t Accept Defeat
Following the decision, the SEC attempted to file an interlocutory appeal, trying to overturn the ruling that XRP distributions and programmatic sales (non-institutional XRP sales) were not investment contracts. Notably, the SEC did not attempt to overturn the ruling on XRP’s security status.
The court rejected the SEC’s interlocutory appeal, adding to the SEC’s multiple losses in the case. Mickle described the XRP lawsuit as the SEC’s weakest lawsuit and believes the SEC will not challenge XRP’s security status if they hope to win anything on appeal.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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