Judge in SEC v. Terraform Labs case disagrees with decision on Ripple
Judge in SEC v. Terraform Labs case disagrees with decision on Ripple
Senior U.S. District Judge for the Southern District of New York, Jed S. Rakoff, dissented from the decision of U.S. District Judge Analisa Torres in Securities and Exchange Commission v. Ripple.
Judge Rakoff is hearing the SEC's case against Terraform Labs and its co-founder, Do Kwon. SEC attorneys had previously urged the court to disregard the judge's "wrongly decided" ruling in the Ripple case. The regulator said at the time that it planned to appeal Judge Analisa Torres' decision.
According to Bitcoin.com, in the court's ruling in SEC v. Terraform Labs, Judge Rakoff said, "The court rejects the approach recently adopted by another judge of this district in a similar case, SEC v. Ripple Labs Inc.".
The document states, "The court declines to draw a distinction between these coins based on their manner of sale, such that coins sold directly to institutional investors are considered securities and those sold through secondary market transactions to retail investors are not."
It is worth noting that some crypto experts still believe in Judge Torres' ruling on XRP and point out certain similarities between these rulings.
Justin Browder, a partner in Willkie's wealth management practice, wrote: "Judge Rakoff's will certainly not be the last rejection of the Ripple decision. The tokens themselves are not investment contracts. What matters is how they are traded. Applying the Howey test, particularly the reasonable expectation of profits prong, yields a different result in Terra than in Ripple."
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