Judge Amy Berman Jackson has upheld Judge Torres’ doctrine, asserting that XRP’s secondary sales are not securities. This ruling came during the Binance vs. SEC case, where the SEC’s claim regarding secondary sales of Binance’s BNB was dismissed. To that end, the ruling by Judge Jackson, in concurrence with that of Judge Torres on the sale of XRP, sets an example in the crypto industry.
Read CRYPTONEWSLAND onThe decision is going to be highly advantageous for Ripple and the cryptocurrency industry at large. It spells a clear message that cryptocurrency assets, which get exchanged at exchanges by private users, do not fall within the definition of securities. This decision comes after the Second Circuit Court upheld Coinbase’s same decision. Consequently, this marks the second major case where secondary sales of crypto are not considered securities.
This precedent is likely to influence ongoing and future crypto cases. Firms like Coinbase, Kraken, and Consensys can leverage this ruling to strengthen their legal positions. Judge Jackson’s detailed reasoning has closed an argument for the SEC. They can no longer argue that Judge Torres’ opinion on secondary sales stands unsupported.
Moreover, Judge Jackson emphasised that crypto assets traded over time by private individuals deviate from the Howey Test. This framework determines what constitutes an investment contract. Her stance leaves no clear principle differentiating between tokens that are securities and those that are not.
Pro-XRP lawyer Bill Morgan expressed optimism, noting the positive impact on XRP holders. This ruling also reduces the likelihood of the SEC appealing Judge Torres’ summary judgment on XRP sales. An appeal risks escalation to the Second Circuit Court, which previously ruled in favour of Coinbase.
Coinbase CLO Paul Grewal highlighted this as a win for the crypto industry. The ruling adds considerable weight to Judge Torres’ earlier decision on XRP programmatic sales. The price of XRP recovered favourably, rising more than 1% from a $0.470 24-hour low. After reaching an intraday high of $0.480, the price traded at $0.475 in an attempt to reclaim the psychological $0.50 level.
Additionally, derivatives traders have shown increased interest. Coinglass data revealed a 0.62% surge in total XRP futures open interest on platforms like OKX and BitMEX.
The alignment of Judges Jackson and Torres on crypto secondary sales as non-securities represents a milestone. It underscores a departure from the traditional Howey framework, providing much-needed clarity to the crypto industry. This decision Strengthens Ripple’s position and sets a positive tone for future crypto-related legal battles.
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