Ripple’s recent triumph in court has left the debate surrounding the classification of XRP as a security unresolved. The possibility of an appeal from the SEC could have a significant impact on the future of XRP. Fred Rispoli, in light of the CNF update, has raised concerns about the inconsistent regulations pertaining to the legal status of XRP, suggesting that it may be considered a security in California but not in New York.
Although Judge Phyllis Hamilton dismissed various claims against Ripple in the Zakinov lawsuit, which included allegations of securities law violations, the question of whether XRP is a security remains unanswered. However, a trial is set to proceed regarding misleading statements made in relation to the sale or offer of securities under California state law. This claim revolves around a statement made by Ripple CEO Brad Garlinghouse in 2017, where he expressed his long-term support for XRP while raising doubts about the utility and problem-solving capabilities of other digital assets.
The court rulings and their implications have been significant. U.S. courts have dismissed allegations that Ripple breached U.S. securities laws, which stands in contrast to a ruling in New York that found Ripple in violation. In July 2023, Judge Analisa Torres ruled that Ripple had indeed violated U.S. securities laws by selling XRP to institutional investors. Currently, Ripple and the SEC are awaiting a court decision on the penalty that Ripple will have to pay.
The potential appeal from the SEC and its impact on the market cannot be overlooked. Judge Phyllis Hamilton mentioned the SEC’s ruling on the Programmatic Sales of XRP in her court order. If Ripple loses the case concerning the third prong of the Howey test, it could provide grounds for the SEC to appeal the Programmatic Sales ruling. Judge Torres also ruled in July 2023 that the programmatic sales of XRP did not meet the requirements of the Howey test.
Ripple’s recent court victory has left many uncertainties about the future of XRP. The outcome of a potential SEC appeal could significantly alter the outlook for XRP. As of now, according to CoinMarket Cap, XRP is priced at $0.4773, experiencing a 2.13% decrease in the past day and a 1.72% decrease in the past week. For more detailed information, please visit CoinMarket Cap.
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