What Lies Ahead for XRP After Ripple’s Ruling is Overturned by Federal Judge

A recent order from a United States District Court judge has cast doubt on the ruling issued by Judge Analisa Torres in the Ripple case, which determined that some XRP sales were not security offers. District Judge Jed Rakoff of the SDNY has dealt a significant blow to the previous decision in the XRP case, allowing the SEC to proceed with its case against Terraform Labs and its creator, Do Kwon. 

The judge strongly dismissed the distinction between public and institutional sales established in the Ripple lawsuit. The disclosure of Judge Rakoff’s ruling on Terraform Labs motion to dismiss the SEC’s complaint against them was made by John Reed Stark, a former attorney for the SEC’s Enforcement Division.

Newsflash: Ripple Decision Already in (Big) Trouble

SDNY District Judge Jed Rakoff today allowed the SEC to go forward with its case against Terraform Labs and founder Do Kwon. In doing so, Judge Rakoff specifically rejected the distinction made in the Ripple case between public… pic.twitter.com/JZZ8vukfFt

— John Reed Stark (@JohnReedStark) July 31, 2023

It should be noted that Terraform Labs and Do Kwon’s attorneys attempted to have the SEC’s case dismissed by the court. They argued that the assets in question were not within the SEC’s jurisdiction, citing the ruling in the Ripple case as support for their claim.

The SEC opposed the reasoning used by Judge Analisa Torres in the Ripple case and announced plans to appeal the ruling. Judge Rakoff openly disagreed with Judge Torres’ approach in the Ripple case, expressing his criticism of the distinction made between public and institutional sales. 

According to Judge Rakoff, the Howey test does not consider a buyer’s expectation of profit when purchasing coins, meaning all buyers should be treated equally.

XRP Price Takes a Hit

According to recent trading data, XRP is currently valued at $0.6899, showing a decrease of 1.93% in the last 24 hours due to the impact of recent news, falling below the $0.70 mark for the first time since July 13th. Over the past week, the token has seen a slight decline of 0.18%. 

In the past 30 days, XRP has had only 13 positive days, representing about 43% of the period. However, it is worth noting that XRP is still trading above its 200-day simple moving average, indicating some resilience amidst market volatility.