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- 1 Judge Torres partially ruled that XRP is not a security, spelling a moderate win for Ripple.
- 2 Experts argue that the SEC might not appeal the ruling as it is secretly in their favor.
Judge Torres partially ruled on July 13 that XRP is not a security. Katie Huan argues that the Securities and Exchange Commission (SEC) might not appeal against the ruling as it is in their favor too. The former federal prosecutor turned CEO of a crypto-focused venture fund, Huan Ventures, Kathryn Huan, stated that the ruling benefits the agency due to the lack of “legal clarity.”
SEC Might Not Appeal Against Ripple in XRP’s Ruling
The infamous case of the SEC vs. Ripple has been going on since December 2020, ever since the agency alleged that the token XRP is a security and also that the crypto company broke U.S. laws by trading an unregistered security. Since then, the case has gone through multiple hearings, as it had great potential to alter the industry, and the crypto community was hoping for its victory.
In a Twitter thread on July 15, 2023, Huan explained why the financial watchdog might not act against the ruling. The SEC is deemed highly bearish over crypto, as is evident by their actions. After the crypto exchange FTX collapsed, the agency’s actions against the industry hiked by 183%.
The agency’s current doctrine hints that it might act against the ruling but it may also stay quiet as the ruling secretly benefits the financial watchdog. The SEC seems to benefit from the ruling even though a loss here could jeopardize their future enforcement actions.
“Anything is possible, but an immediate appeal seems unlikely both because the agency would have to ask the court to split this decision from the portion going to trial and because I’m skeptical the SEC actually wants legal clarity.” – Huan.
Ripple Labs CEO Brad Garlinghouse also shares similar views. He said that the SEC might not appeal against the ruling for years ahead because an appeal from the agency could reinforce Judge Torres’ decision that XRP is not a security. On the contrary, Jeremy Hogan, in a video posted on YouTube, says that the agency will launch an appeal, mainly after the trial ends in early 2024.
Experts argue that the agency has sued the world’s biggest crypto exchange and Coinbase for violating U.S. securities law. The outcome of this case has the potential to affect other cases as well.
In the meantime, lawmakers, crypto commentators, and crypto community members are looking to Congress to provide legal clarity for the industry, especially in light of the recent ruling.
Brian Quintenz, former commissioner of the Commodities and Futures Trading Commission (CFTC), argues that the court ruling would inadvertently bring more uncertainty for entrepreneurs and builders of the industry.
At press time, XRP is trading at $0.7395, dropping 1.25% in a day and gaining 57.13% in several days. Its market cap contracted by 0.81% to $38.84 billion, while trading volume jumped by 22.44% to $3.55 billion. Ranking at number 4, the market dominance for the token is 3.22%.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
