The ruling that Judge Analisa Torres issued in the Ripple case, which found some sales of XRP to be non-security offers, has been called into question by a subsequent order from a judge in the United States District Court.
In recent news, District Judge Jed Rakoff of the SDNY dealt a huge blow to the decision that had previously been made in the XRP case. The judge’s verdict lets the Securities and Exchange Commission (SEC) continue its case against Terraform Labs, and creator Do Kwon, strongly dismissing the difference between public and institutional sales that was established in the Ripple lawsuit.
Judge Rakoff’s decision on Terraform Labs’ request to dismiss the SEC’s complaint against them was disclosed by John Reed Stark, who had previously worked as an attorney for the SEC in the agency’s Enforcement Division.
It is important to keep in mind that attorneys for Terraform Labs and Do Kwon sought the court to throw out the SEC’s case. The attorneys supported their claim that the assets in issue do not fall within the SEC’s jurisdiction by referring to the verdict that was handed down in the case involving Ripple.
In response to this, the SEC voiced its opposition to the logic used by Judge Analisa Torres in the Ripple case and announced its intention to appeal the verdict. Judge Rakoff strongly disagreed with Judge Torres’s approach in the Ripple case and said as much in an open appeal to Torres’s decision.
Rakoff was critical of how the Ripple case differentiated between public and institutional sales. According to him, the Howey test does not take into account a buyer’s expectation of profit when purchasing coins; hence all buyers are treated equally.
XRP price falls as ruling reject
As of the latest trading data, XRP is currently priced at $0.6899, displaying a decline of 1.93% within the last 24 hours, impacted by the latest news falling below the $0.70 psychological threshold for the first time since July 13. Over the past week, the token has experienced a minor setback of 0.18%.
During the previous 30 days, XRP has witnessed only 13 days in the green, accounting for approximately 43% of the observed period. Despite this, it’s noteworthy that XRP continues to trade above its 200-day simple moving average, reflecting some level of resilience in the midst of market fluctuations.
At the moment, XRP’s support level stands at $0.65059, indicating a level at which the token has historically shown buying interest and potential price stabilization. On the other hand, the token faces a resistance level at $0.7401, marking a price point where selling pressure and profit-taking might arise.
In terms of market capitalization, XRP presently boasts a value of $36.3 billion.
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