Legal expert Bill Morgan argues that Judge Amy Berman Jackson’s ruling in the recent Binance case strengthens the argument that XRP is not a security. Judge Jackson cited Judge Analisa Torres’ decision in the Ripple case, highlighting the importance of distinguishing between digital coins and offers to sell them.
In her decision, Judge Jackson dismissed the SEC’s claim that secondary market sales of Binance’s BNB coin qualify as securities. She emphasized the need to clearly differentiate between offers to sell digital currency and the coins themselves. This distinction is crucial in understanding the legal environment of cryptocurrencies.
Judge Jackson supported her decision by referencing previous district court rulings on SEC enforcement proceedings related to cryptocurrencies. These rulings consistently made a distinction between the tokens and the alleged investment contracts, which has significant implications for digital assets in the future.
Judge Torres’ statement in the Ripple case, stating that the XRP token is not an investment contract, was a key citation in Judge Jackson’s decision. By aligning with higher court opinions, Judge Jackson’s decision carries substantial weight.
Bill Morgan criticized CoinDesk for failing to mention that Judge Torres was one of the judges whose opinions Judge Jackson found influential. This omission overlooks the crucial legal argument that separates a cryptocurrency asset from alleged investment contracts.
Morgan emphasized the importance of Judge Jackson’s decision, stating that it supports Judge Torres’ previous ruling that XRP is not a security. Both the XRP community and holders should view this decision as significant.
Meanwhile, the price of XRP is currently $0.4724, down 0.71% in the last 24 hours and 9.30% lower over the previous seven days, according to CoinMarketCap data.
In addition, CNF has reported on Ripple’s Chief Legal Officer’s disclosures of alleged improper SEC activities, further complicating the legal and regulatory framework for cryptocurrencies, particularly XRP.