Judge Overrules Ripple Case Precedent
In a recent turn of events, a federal judge has dismissed the notion that the split decision of the Securities and Exchange Commission's (SEC) case against Ripple could render part or all of the SEC's case against Terraform Labs invalid.
Terraform Labs' Dismissal Request Rejected
The federal court ruled against a request to dismiss the enforcement case that the SEC filed against Terraform Labs and its founder, Do Kwon. Despite Terraform's attempt to use Ripple's split decision as a counter-argument, their efforts proved fruitless.
Ripple Case Fails to Influence Terraform's Lawsuit
U.S. District Judge Jed Rakoff, presiding over the Southern District of New York, repudiated Terraform and Kwon's arguments. He stated the civil case has the right to proceed, rejecting the relevance of the Ripple case.
Court Stands Firm on Cryptocurrency Regulations
Rakoff further commented, declining to differentiate between coins based on their sale methods. He dismissed the idea that coins sold directly to institutional investors should be considered securities, while those sold in secondary market transactions to retail investors should not. In his decision, he directly referenced the Ripple case, affirming his disapproval of the approach taken by another judge from his district in a similar situation.