The legal battle surrounding Ripple’s cryptocurrency, XRP, has taken a significant turn, with recent insights suggesting that XRP’s classification as a security may be a non-issue. Mickle, a renowned American wealth advisor, has provided a fresh perspective on why XRP is unlikely to be deemed a security, despite ongoing legal manoeuvres by the U.S. Securities and Exchange Commission (SEC).
Judge Torres’ Ruling: A Critical Blow to the SEC’s Case
In a pivotal ruling, Judge Analisa Torres determined that XRP itself does not qualify as a security. This decision represents a significant setback for the SEC, which has been actively pursuing Ripple on the grounds that XRP should be classified as a security. The ruling found that while XRP can be sold as part of an investment contract, the token itself does not inherently meet the criteria for security.
Mickle’s recent commentary on X emphasizes that this ruling is known as “Dicta,” a legal term indicating that the judge’s opinion, while influential, was not necessary to resolve the core issues of the case. Mickle argues that this legal distinction undermines the SEC’s case, suggesting that the agency’s pursuit of Ripple was primarily to establish that XRP qualifies as a security.
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SEC’s Legal Position: Weak and Potentially Unappealable
Mickle asserts that Judge Torres’ declaration fundamentally weakens the SEC’s case. According to him, the SEC’s primary objective in bringing the lawsuit was to assert that XRP is a security. However, since Judge Torres has determined that XRP does not meet this classification, Mickle argues that appealing the decision would be illogical and counterproductive for the SEC.
Mickle describes the Ripple lawsuit as one of the weakest cases the SEC has pursued, further supporting his view that the case’s foundation is now compromised. He contends that legal appeals typically focus on stronger arguments, making an appeal in this context unlikely.
SEC’s Appeal Attempts and Future Prospects
The SEC did attempt to file an immediate appeal concerning Judge Torres’ summary judgment. This appeal was focused on programmatic sales and other distributions of XRP, which were not deemed investment contracts. Importantly, the SEC did not challenge the court’s finding that XRP itself is not a security.
Despite the SEC’s effort, the court denied the request for an interlocutory appeal. Analysts had speculated that the SEC might pursue a formal appeal after the final judgment. However, there remains a strong belief among experts that the SEC will not challenge Judge Torres’ decision regarding XRP’s classification as a security.
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