Point of view stories. Just a few weeks ago, the judge Torres declared that the XRP was not a financial security when sold on the secondary market, but remained so for institutional investors. Following this decision, many observers reacted positively, the XRP share price surged and the SEC seemed to get down on one knee. Back to square one in the last few hours with a judge who this time refuses to make the distinction and which, in another case, takes on a decision contrary. Back to square one for XRP and the cryptos ? At Ripple Labswe temporize and minimize, the two cases have nothing in common. Is that so?
At the Terraform Labs trial, Ripple steals the show from Luna!
It all began when, on Monday July 31st in New York, in the Southern District Court of Justice, Judge Jed Rakoff gave the crypto anthill a big kick. In just a few sentenceshe shattered a few weeks of relative serenity at Ripple Labs and many others. In the case of the SEC vs. Terraform Labs and Do Kwonthe judge authorized the regulator to continue the procedure in progress and therefore considers the tokens as financial securities. In so doing, he contradicted his colleague Analisa Torres in charge of the XRP file. Excerpt:
« The court refuses to distinguish between these tokens based on how they are sold, and refuses to allow tokens sold directly to institutional investors to be considered securities while those sold through secondary market transactions to retail investors would not. In so doing, the court rejects the approach recently taken by another judge in this district in a similar case. »
Without quoting it, everyone understood to whom it was addressed. Immediately, all eyes turned to San Francisco to watch for a reaction from the people in charge of Ripple Labs.
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At Ripple Labs, we’re adamant that XRP is not a security
And it didn’t take long for it to come, as only a few hours after New York’s decision, Stuart Alderotythe legal director of the XRP issuing company, took the speech to give his reading of the events:
« Let me be clear while there is some confusion at the moment. The Terra decision changes NOTHING about the Ripple decision that XRP is not a security. […] Our decision came after a complete factual record developed over more than 2 years was presented to the Court. «
He then recalled that the Terraform Labs case had just begun, that everything could still change, and that this decision would not have « no impact on the XRP case »..
Nothing to see here? Basically, Stuart Alderoty is right, and Ripple shouldn’t be impacted by the certainties of a judge in a case other than their own. However, one can’t help thinking that all this is putting theuncertainty in a market crypto which asked clarity and visibility.
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