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A prominent wealth advisor, Mickle, has raised concerns about the legal implications of Judge Torres’ ruling on the secondary market trading of XRP. While the decision has been celebrated by many in the crypto community, Mickle points out a significant limitation: the ruling does not set a binding precedent for other courts.
With these mixed signals, the crypto market is prepping for another intense legal war.
The Non-Binding Nature of the Ruling
Mickle’s comments came in response to a statement from well-known crypto YouTuber Wendy O, who emphasized the importance of Judge Torres’ decision that XRP is not considered a security in secondary market transactions. Wendy O highlighted that this classification is crucial for the broader crypto and NFT industries, as it could influence how other digital assets are treated under U.S. securities laws.
However, because a district court issued it, Mickle cautioned that the ruling does not mean other courts will follow suit. Mickle further suggested that the situation could change if the SEC appeals the decision and loses in the Second Circuit Court of Appeals, as a ruling from this higher court would set a binding precedent that other courts would have to follow.
SEC’s Limited Appeal Options
Mickle’s analysis sparked reactions within the XRP community, including a response from legal expert Bill Morgan. Morgan clarified that Judge Torres did not specifically rule on the secondary market sales of XRP, but rather on the programmatic sales conducted by Ripple on digital exchanges. This distinction is critical because it limits the scope of the SEC’s ability to appeal the ruling.
Morgan emphasized that since Judge Torres did not issue a decision on secondary market sales of XRP, the SEC cannot appeal this aspect of the case. The judge’s ruling was focused on Ripple’s programmatic sales and other distributions of XRP, which she determined were not securities transactions. However, she did find that Ripple’s institutional sales of XRP violated securities laws.
Ripple Ruling’s Influence on Other Cases
Despite its limitations, the ruling is already making waves in other legal cases. For instance, Judge Amy Jackson cited Judge Torres’ decision on XRP’s programmatic sales to dismiss the SEC’s claims about Binance’s BNB token. This shows the ruling’s power to influence other court decisions, even if it’s not a binding precedent.
While, the ruling’s influence is already being felt, as other courts begin to reference it in their decisions. The crypto community will closely watch the ongoing legal battles, which could have far-reaching implications for regulating digital assets.