Key Takeaways:
- Ripple achieved a partial win against the SEC in its legal battle.
- This reality can change the regulatory landscape in the US.
- The SEC-driven appeal aims to reverse Judge Torres’s decision.
YEREVAN (CoinChapter.com) — The Security and Exchange Commission’s (SEC) battle with Ripple began in December 2020. The SEC accused Ripple of illegally distributing and issuing its native currency XRP.
However, on July 13, Ripple partially won against the SEC after the court ruled that Programmatic (retail) sales of XRP were not unruly. Nonetheless, on Aug. 18, the court approved the SEC’s request to appeal against Ripple. This development created yet another conversation on whether the SEC can win the legal battle.
So let’s dive and see what is the sentiment toward this and understand the implications of it.
The Court Battle Was Pyrhicc-JD Supra Says
Analysts at Insight platform JD Supra posit the viewpoint that Ripple’s July 13th victory was partial at best. At the same time, Ripple’s XRP token qualified as a security during Institutional sales.
Judge Torres ruled that Programmatic sales (retail sales) of the XRP token were not deemed as an example of investment contracts. Therefore, this bittersweet conclusion left an aftertaste in SEC’s appetite for complete victory.
Moreover, in their vision, this legal reality can create a situation where regulation cannot follow a uniform process. So there must be an individual approach, mostly due to the varying shades and colors of crypto projects or currencies.
Or, for example, the approach toward investors and their aspirations in the crypto space.
Analysts conclude that if the ruling is upheld and the appeal does not yield results, it can create a hurdle. A hurdle for US regulators and, particularly, the SEC, no matter their agenda.
The View Of The Chamber
In the eyes of the analysts from the advocacy group Chamber of Digital Commerce, Ripple nonetheless got fair treatment from the US court. The decision to recognize Institutional sales as security transactions was a definite win for the SEC.
Yet, in court, Retail and so-called “Other” sales of XRP were not recognized as security transactions, which is a win for Ripple.
In addition, they posit that this ruling presents a step forward in further resolving the regulatory quagmire present in the US. On the other hand, while they believe that Congress will want to present bills that introduce digital currencies more in the market they suspect that they won’t reach a state of enactment.
Tech Crunch Argues That The Ruling Isn’t A True Win
The global news outlet Tech Crunch posits that the ruling doesn’t give much ground for celebration. Moreover, they think that the SEC is not happy with the result. They will try their best to change the interpretation of the ruling to further their legal argument.
Crypto Lawyer Thinks That A Settlement Is Unlikely
Psedounous Lawyer “MetaLawMan” James Murphy expressed that a settlement isn’t likely in a series of now-deleted tweets. In his mind, the SEC cannot leave the ruling untested and will do its best to challenge it. He supposes that the SEC’s ultimate goal is to reverse Judge Torres’s decision.
MetaLawMan also notes the political implications. The whole outcome of the ruling gave the SEC a hit to its reputation. Which, in turn, gave people like Congressman Ritchie Tores the ability to put further criticism and pressure on SEC Chairman Gary Gensler.
