Judge Amy Berman Jackson Upholds Landmark Decision on Ripple’s XRP
Exciting news for the crypto community as Judge Amy Berman Jackson confirms Judge Torres’ groundbreaking ruling on Ripple’s XRP. The recent verdict in the Binance vs. SEC case aligns with Judge Torres’ assertion that XRP does not qualify as a security and that its sales do not meet the Howey Test’s criteria for investment contracts.
Positive Reception for Judge Torres’ Decision
District Judge Amy Berman Jackson commended Judge Torres’ judgment in the Ripple case, particularly emphasizing that XRP’s programmatic and secondary sales do not constitute securities. This agreement marks a significant win for Ripple and the wider crypto industry.
Impact on Ongoing Legal Cases
- Judge Jackson’s ruling establishes a precedent for major U.S. crypto litigations involving platforms like Coinbase, Kraken, and Consensys.
- The verdict supports the argument that secondary sales of cryptocurrencies such as Binance’s BNB should not be classified as securities, potentially impacting similar cases.
- The judge also concurs with the Second Circuit Court’s decision that secondary transactions involving crypto assets do not fall under the securities category, offering valuable support to crypto businesses facing SEC scrutiny.
Legal Analysis
- Pro-XRP lawyer Bill Morgan hails the ruling as a win for XRP holders and the crypto community, suggesting that the SEC’s possible appeal could escalate the case to the Second Circuit Court.
- Morgan highlights Judge Jackson’s rejection of the SEC’s claim that all crypto tokens are inherently investment contracts, citing the Ripple and Telegram cases as influential in shaping this perspective.
- Eleanor Terrett predicts that platforms like Coinbase, Kraken, and Consensys will leverage the Binance ruling to bolster their legal stances, challenging the SEC’s attempts to portray the Ripple verdict as an isolated incident.
XRP Price Movement
Following Judge Jackson’s ruling, XRP has demonstrated positive momentum in the market. The cryptocurrency has experienced a slight increase, climbing from $0.470 to $0.475 within 24 hours and aiming to reclaim the $0.50 mark. However, trading volume witnessed a 3% decline, although derivatives traders have shown strong buying interest.
Uncertainty Looms
While Ripple celebrates legal victories, uncertainty remains regarding the SEC’s stance on XRP’s security status. The SEC retains the option to appeal any ruling favoring Ripple, with potential shifts in regulatory approach under new administrations or SEC leadership. Additionally, legal experts anticipate Judge Torres to rule on remedies and injunctions within the next 60-90 days, bypassing the need for expert witness testimonies.
Hot Take: A Turning Point in the Crypto Legal Landscape
With Judge Amy Berman Jackson affirming the non-securities status of XRP as established by Judge Torres, the recent ruling marks a pivotal moment for the crypto industry. The decision sets a precedent for future cases and provides clarity on the regulatory treatment of cryptocurrencies, potentially reshaping the legal framework governing digital assets.
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