• The Ripple vs. SEC lawsuit is in its final phase and the ruling could have significant consequences for XRP secondary sales.
• Attorney John Deaton advocates for addressing both XRP’s nature and secondary sales in order to effectively address the issue of secondary sales.
• The potential summary judgment date remains uncertain but may be on September 6th.
Ripple vs SEC: Can Judge Torres Avoid Ruling on XRP Secondary Sales?
The Ripple vs. SEC lawsuit has entered its final phase, intensifying industry anticipation as the imminent ruling could have significant consequences. A crucial aspect of the case revolves around the issue of XRP secondary sales, holding paramount importance.
Striking Lack of Evidence
The SEC has accused Ripple of offering XRP as an unregistered security, asserting that XRP itself should be deemed a security. This accusation directly impacts the sales of XRP on the secondary market. However, the regulatory agency has failed to clearly distinguish between Ripple’s direct sales of XRP and subsequent trading of XRP on the secondary market, creating uncertainty.
Deaton Speaks Out: Judge Torres’ Potential Ruling
Attorney John Deaton , involved in the XRP lawsuit as an Amicus Curiae, holds a different viewpoint compared to other lawyers involved in the case. While some lawyers believe that Judge Torres may not address the nature of XRP or the issue of secondary sales in her decision, Deaton disagrees. Deaton asserts that to effectively address the issue of secondary sales, Judge Torres must first dismiss the SEC’s theory surrounding XRP.
The SEC Theory
The SEC contends that Ripple engaged in a continuous offering with no end date over several years from 2013-2020 which allowed them to raise capital from investors without registering their offer and sale with them as required by law . According to this theory , all subsequent transactions involving those tokens are considered securities transactions requiring registration . This theory is key to understanding how Judge Torres might rule on whether any activities related to trading or selling these tokens constitute violations under US securities laws .
Potential Summary Judgment Date
The potential summary judgment date remains uncertain but may be scheduled for September 6th . If this is indeed true then we can expect a ruling soon after this date . It will be interesting to see how Judge Torres decides this important case and what implications it has for future crypto regulation in America . Regardless , it looks like we won’t have long before we find out!