Judge Amy Berman Jackson has delivered a significant win for the cryptocurrency industry in the case involving Binance and the US Securities and Exchange Commission (SEC). Her ruling supports Judge Analisa Torres’ groundbreaking decision on XRP.
The Binance vs. SEC ruling confirms Judge Torres’ analysis that XRP, the native cryptocurrency of Ripple, is not a security. Furthermore, it states that the programmatic and secondary sales of the token do not meet the criteria set by the Howey Test for investment contracts.
The SEC accused Binance of securities violations for its secondary market sales of BNB. While the court dismissed some charges against the company due to its failure to clarify its arguments, it upheld most of the charges. However, the court rejected the SEC’s allegations of secondary sales relating to Ripple’s XRP decision in June 2023.
Pro-XRP lawyer Bill Morgan welcomed the court’s decision, seeing it as a positive development for XRP holders and the cryptocurrency community as a whole. Morgan also highlighted that Judge Jackson favored Judge Torres’ approach, which distinguished between institutional investors and programmatic retail buyers, over Judge Rakoff’s approach in the Terraform case.
The ruling may decrease the likelihood of an SEC appeal against Ripple regarding programmatic sales, according to Morgan. This contradicts the claims of @CGasparino, who believed Judge Torres made an incorrect decision based on his legal sources.
The author and anyone mentioned in this article express their views and opinions for informational purposes only and do not provide financial or investment advice. Investing or trading cryptocurrencies carries the risk of financial loss.
In other news, Binance has obtained a VASP license in Dubai, bringing changes for its users. Additionally, Matt Hougan has shared a timeline for Solana ETF and XRP.