The court order stated,
“The court is inclined to agree with the approach of the court in Ripple Labs, since the ‘it-is-what-it-is’ approach of the SEC appears to be inconsistent with the clear Supreme Court directives […].”
Fox Business Journalist Eleanor Terrett highlighted a crucial opinion from the court ruling that stated,
“[…] the government’s reliance on the assertion that “the crypto assets are the embodiment of the investment contract,” and its argument at the hearing about the nature of the technology and the interdependence of the platform and the performance of every token, is not enough, standing alone, to bring secondary sales of BNB under the investment contract rubric.”
How will this affect SEC plans to appeal against the Programmatic Sales of XRP ruling?
Binance Ruling a Blow to SEC Plans to Appeal Against the Programmatic Sales of XRP Ruling
Investors await the court verdict on the penalty Ripple must pay for breaching US securities laws. The Binance ruling does not affect the pending Ripple case ruling. However, the Binance ruling could affect SEC plans to appeal against the Programmatic Sales of XRP ruling.
In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
The reference to the Programmatic Sales of XRP ruling could prove crucial, with Judge Jackson reinforcing Judge Torres’s ruling.
In July 2023, XRP surged to a high of $0.9327 as investors reacted to Judge Torres’s ruling. However, XRP returned to sub-$0.50 levels, weighed by market expectations of the SEC appealing against the ruling.
