The legal landscape surrounding cryptocurrencies in the U.S., especially XRP, is gaining much-needed clarity. Two recent court decisions have significantly impacted the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple and broader industry regulations.
The State of Secondary Cryptocurrency Sales
In a significant victory for the crypto industry, District Judge Amy Berman Jackson has bolstered the legal precedent set by Judge Analisa Torres in the SEC vs. Ripple case. Judge Jackson’s decision in the Binance vs. SEC case centered on the classification of Binance’s BNB token.
Read Also: SEC vs. Ripple: 3 Reasons Why Judge Torres Will Address XRP Secondary Market Trading
The SEC argues that secondary sales of BNB by users on crypto exchanges constituted unregistered securities offerings. However, Judge Jackson disagreed, dismissing the SEC’s claim.
This ruling, shared on X by Fox Business journalist Eleanor Terrett, aligns with Judge Torres’ previous decision in the Ripple case. Judge Torres determined that XRP sales directly from Ripple to institutional buyers and subsequent secondary market sales did not meet the criteria of investment contracts under the Howey Test. The Howey Test is a legal framework used to determine whether an asset qualifies as a security.
Judge Jackson’s decision in the Binance case strengthens Judge Torres’ reasoning and sets a crucial precedent for ongoing crypto-related lawsuits in the U.S. Companies like Coinbase, Kraken, and Consensys can leverage this precedent in their ongoing legal battles with the SEC regarding their token offerings.
Impact on XRP and the U.S. Crypto Market
The recent rulings have positive implications for Ripple and XRP holders. Although many are confident the SEC will attempt to appeal Judge Torres’ ruling after the lawsuit with Ripple ends, the SEC’s ability to argue against her decision on secondary sales of XRP is now significantly weakened.
Additionally, the favorable ruling in the Coinbase case adds further weight to the idea that secondary crypto sales generally don’t constitute securities offerings.
These developments have caused a cautious rise in XRP’s price. XRP has climbed 0.2% over the past 24 hours to its current price of $0.4734. If this momentum continues, it might regain the $0.5 level soon.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Legal Expert Slams Ex-SEC Chair In A New Development In XRP Lawsuit
The recent court decisions provide much-needed clarity for the burgeoning cryptocurrency industry in the U.S. The legal classification of crypto assets, particularly regarding secondary sales, is becoming increasingly well-defined.
These rulings pave the way for a more predictable regulatory environment, potentially attracting further investment in the crypto space. Ripple is making significant global strides with XRP and blockchain technology adoption, and proper regulation could open up the U.S. market for significant blockchain innovation.
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. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
