Point of view stories. Just a few weeks ago, the judge Torres declared that the XRP was not a financial security when it was sold on the secondary market, whereas it remained so for institutional investors. After this decision, many observers reacted positively, the price of XRP has jumped and the DRY seemed to be on one knee. Back to square one in recent hours with a judge who refuses this time to do the distinction and who takes, in another case, a decision opposite. Back to square one for the XRP and the cryptos ? At the house of Ripple Labs, we temporize and we minimize, the two cases have nothing in common. Really ?
At the Terraform Labs trial, Ripple steals the show from Luna!
It all started when on Monday, July 31 in New York, in the Southern District Court of Justice, Judge Jed Rakoff kicked the crypto anthill big. In just a few sentences, he destroyed a few weeks of relative serenity at Ripple Labs and in many others. As part of the SEC case against Terraform Labs And Do Kwonthe judge authorized the regulator to continue the current procedure and therefore considers the tokens as financial securities. In doing so, he therefore contradicts his colleague Analisa Torres in charge of the XRP file. Extract :
“The court refuses to distinguish between these tokens based on their mode of sale and refuses to consider tokens sold directly to institutional investors as securities while those sold through secondary market transactions to retail investors wouldn’t be. In doing so, the court rejects the approach recently taken by another judge in this district in a similar case. »
Without quoting it, everyone has understood to whom it is addressed. Immediately, all eyes turned to San Francisco for a reaction from those responsible for Ripple Labs.
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At Ripple Labs, we do not budge, XRP is not a securitythere
And it doesn’t take long to come because only a few hours after the New York decision, Stuart Alderotythe legal director of the XRP issuing company took the floor to deliver his reading of the events:
“ Let me be clear as there is currently some confusion. The ruling in the Terra case changes NOTHING about the Ripple ruling that XRP is not a security. […] Our decision came after a comprehensive factual record developed over more than 2 years was presented to the Court. »
He then recalled that the Terraform Labs affair had just begun, that everything could still change and that this decision would not have “no impact on the XRP file”.
Move along, nothing to see ? Fundamentally, Stuart Alderoty is right and Ripple should not be impacted by the certainties of a judge in a case other than theirs. However, one cannot help but think that all this givesuncertainty in a market crypto who was asking on the contrary, clarity and visibility.
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