Legal expert Bill Morgan contends that Judge Jackson’s recent ruling bolsters the argument that XRP should not be classified as a security. Judge Jackson referenced Judge Analisa Torres’ decision in the Ripple case, underscoring the importance of distinguishing between digital currencies and offerings to sell them.
In the Binance case, District Judge Amy Berman Jackson’s decision aligns with Morgan’s viewpoint, asserting that XRP does not meet the criteria of a security. She dismissed parts of the SEC’s case against Binance, rejecting the notion that secondary market sales of Binance’s BNB coin constitute securities.
Judge Jackson’s ruling, delivered on Friday, refutes the SEC’s assertion by highlighting the crucial distinction between offers to sell digital currencies and the currencies themselves. This distinction is pivotal for understanding the legal landscape of cryptocurrencies.
The judge supported her decision by citing various district court precedents in SEC enforcement actions involving cryptocurrencies. These cases consistently differentiate between tokens and alleged investment contracts, setting a significant legal precedent for digital assets.
In the Ripple case, Judge Torres’ statement that XRP does not function as an investment contract was pivotal. Judge Jackson emphasized that these distinctions align with the Supreme Court’s definition of a security, lending substantial weight to her ruling.
Bill Morgan criticized CoinDesk for overlooking the fact that Judge Torres’ insights, particularly regarding XRP, were influential in Judge Jackson’s decision. This omission neglects the critical legal argument distinguishing cryptocurrencies from investment contracts.
Morgan emphasized that Judge Jackson’s decision reinforces Judge Torres’ July 13, 2023, ruling that XRP is not a security. This perspective is crucial for both the XRP community and stakeholders in understanding the legal status of the cryptocurrency.
Meanwhile, according to CoinMarketCap data, XRP is currently priced at approximately $0.4724, reflecting a 0.71% decrease in the past 24 hours and a bearish trend of 9.30% over the last seven days.
Additionally, CNF has reported on Ripple’s Chief Legal Officer’s disclosures alleging improper SEC activities, further complicating the regulatory framework for cryptocurrencies, especially XRP.
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