2023-7-14 09:53 |
The United States Securities and Exchange Commission (SEC) has issued a statement following the ruling in the Ripple lawsuit. The crypto community has harshly criticized the wording of the statement.
Following Ripple’s victory over the United States Securities and Exchange Commission (SEC) in the security violations lawsuit, the agency has issued a statement about the ruling. The crypto community has lambasted the SEC’s statement, saying that it was spinning the outcome in a way that made it seem like a positive outcome for the agency.
SEC XRP Ruling Loss Sparks Massive DiscussionJudge Analisa Torres, who was presiding over the case, said that Ripple’s Programmatic Sales and other distributions of XRP on public exchanges do not qualify as investment contracts, sparking jubilation among the crypto community.
The reaction from the crypto community has been universally celebratory. Ripple’s Chief Legal Officer Stuart Alderoty commented on the ruling, saying that the outcome was a “huge win” and that it could spark “a rational conversation about crypto regulation in this country.”
The XRP-SEC lawsuit has been a topic of discussion within the crypto community for quite a while. If you are unaware of the details surrounding the lawsuit, check out our deep dive on the case here: Everything You Need To Know About Ripple vs. SEC
The crypto community has strongly criticized the SEC’s statement, with some calling it “pathetic.”
The SEC stated in part that,
“We are pleased that the court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances”
It was Paradigm’s Chief Legal Officer Katie Biber that said so, claiming that the statement had “vibes of young campaign hack spinning on bad facts, vs powerful government agency expected to tell the truth.”
XRP Win Triggers Altcoin RallyWhile the XRP has largely come out victorious in the lawsuit, there are some caveats. The ruling did state that Ripple’s Institutional Sales of XRP constituted an unregistered offering and sale of investment contracts. As such, it violated Section 5 of the Securities Act.
Some see the case as a partial victory for Ripple, and there could be some more legal challenges ahead for the company. On the whole, however, it has been a strong showing for Ripple, and both Coinbase and Kraken have relisted XRP following the ruling.
The SEC’s response to the XRP ruling has had a positive effect on the crypto market — with Ripple jumping by over 100% after it was announced.
Altcoins, in particular, have seen a rally since the news broke, with those tokens that have seen a positive effect, including ADA, SOL, and XLM. These tokens have increased by a massive 25–50%.
Ethereum has also crossed over $2,000, going up by about 8% in the last 24 hours. The reason behind the massive jump in altcoin value is likely because it establishes a new precedent for how crypto assets are treated and whether they pass the Howey Test.
The post Despite Positive XRP Ruling, SEC Claims Court ‘Rejected Ripple’s Made-Up Test’ appeared first on BeInCrypto.
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