The recent victory of Ripple Labs against the SEC creates a real upheaval within the crypto industry. We are more specifically referring to the verdict of Judge Torres, which even today arouses mixed reactions. According to a former lawyer and SEC official, for example, this is a complex legal dilemma. He explains why.
Ripple/SEC affair: A double-edged sword
On July 13, Judge Analisa Torres rules (finally!) on the Ripple/SEC case. The verdict : Ripple wins the case. Warmly welcomed by the crypto community, this news nevertheless remains controversial.
“Ripple’s decision is troublesome on multiple fronts”says John Reed Stark, a former SEC official. According to him, the decision rests on fragile ground. The proof, the SEC is currently studying the possibility of appealing.
A complex and questionable legal precedent
In her verdict, Judge Torres considers the XRP token to be a security when sold to institutional investors (and not during certain other sales). This distinction has been criticized because it creates a class of quasi-titles which discriminates according to the sophistication of the investor.
According to Stark, this decision goes against the principles of investor protection. The former SEC official even questions the fluctuating classification of Ripple’s XRP token as “securities”.
Despite the win, Ripple’s future remains uncertain
Certainly, Ripple’s victory against the SEC represents a real triumph for the crypto community. However, the long-term consequences remain uncertain. Especially since the regulator could appeal. This would cause a new another extended process.
Either way, Brad Garlinghouse (CEO of Ripple) believes that the SEC appeal would only strengthen Justice Torres’ verdict.
Ripple’s victory against the SEC represents a major turning point in the crypto industry. However, the mixed reactions and uncertainties about the long-term consequences highlight the importance of clarifying crypto regulations. The goal: to guarantee the protection of investors and encourage innovation in this constantly evolving field.
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