• A US District Judge recently contested Judge Analisa Torres’ decision in the Ripple case, ruling that the SEC’s arguments were plausible.
• The motion to dismiss in the SEC v. Terraform et al. case was denied as U.S. Judge Jed Rakoff sided with the financial regulator.
• In his 50-page Opinion and Order document, Judge Rakeoff disagreed with the Ripple v. SEC case decision, raising questions about XRP’s future status under securities law.
Recent Ruling on Ripple Case
A recent ruling by a US District Judge contested Judge Analisa Torres’ decision in the Ripple case. Judge Rakeoff’s 50-page Opinion and Order found the SEC’s arguments plausible, indicating that the TerraUSD (UST) and LUNA sale potentially violated U.S Securities law.
SEC v Terraform et al.
On July 31st, there was a significant development as U.S judge Jed Rakoff from the Southern District of New York denied Terraform’s attempt to dismiss fraud charges filed by the U.S Securities and Exchange Commission (SEC). During this ruling, Judge Rakoff also expressed disagreement with judge Analisa Torres regarding her recent decision in Ripple v SEC case.
Lawyers representing Terraform Labs and its CEO Do Kwon had filed a motion to dismiss citing Ripple’s partial victory against financial regulators as basis for their argument earlier in July 2020 when judge Torres ruled that retail sales of XRP tokens did not breach US securities law; it was only institutional sales could be considered an offense according to Howey Test which does not account for distinction between institutional and retail investors . The motion was met with swift response from SEC urging court to disregard rulings in favor of ripple which were deemed „wrongly decided“.
Judge Rakeoff Sided With The SEC
Judge Rakeoff has now sided with SEC resulting in Terraform labs and Do Kwon facing fraud allegations by commission .In a 50-page opinion and order document ,Judge Rakeoff stated that SEC’S arguments presented plausible claim that sale of terraUSD (UST) and LUNA among others violated US securities law .He cited ruling on ripple case expressing strong disagreement as howey test does not make any distinction between purchasers whether they bought coins directly from defendants or secondary re sale transaction has no impact on reasonable individual viewing defendant’s action ,statement evincing promise of profits based on efforts .
Implications For XRP
After recent ruling is sec v terraform et al case ,there is considerable speculation regarding implications for ripples partial victory against sec raising questions about xrp ’s future status under security law