Judge Amy Berman Jackson Supports Important Elements of SEC v Ripple Ruling in Binance Case
In a recent development that has captivated the cryptocurrency sector, Judge Amy Berman Jackson has endorsed the findings of Judge Torres regarding Ripple’s token characteristics, describing them as “enlightening and compelling.” This endorsement is a significant nod to Judge Torres’ discernment and could signal a broader judicial agreement.
**Binance**, embroiled in allegations of trading unregistered securities, is actively contesting the SEC’s legal action even as its CEO, CZ, is incarcerated. This legal stance could potentially fortify the positions of other crypto enterprises like **Coinbase**, **Kraken**, and **ConsenSys** in their respective legal challenges.
Judge Jackson’s remarks in the **SEC v. Binance** litigation illuminate the **SEC v. Ripple** case from a new angle. Pro-XRP attorney Bill Morgan has pinpointed pivotal aspects of Judge Jackson’s decision, which could ripple through the crypto community with significant implications.
**Why Judge Torres’ Ripple Case Insights Are Gaining Credence**
Judge Jackson’s backing of the Ripple case ruling is pivotal. Her affirmation of Judge Torres’ insights on the token’s essence as “enlightening and compelling” suggests a growing judicial consensus on the matter.
The application of the **Howey Test**—particularly its third criterion, which involves the expectation of profits from the efforts of others—is a hotly contested topic in crypto regulation. Judge Torres’ analysis in the Ripple case made a clear distinction between institutional and programmatic token purchasers, a perspective that Judge Jackson favored over Judge Rakoff’s approach in the Terraform litigation, which lacked this differentiation.
**The Ripple Ruling’s Ripple Effect in the Crypto Sphere**
Bill Morgan, a prominent pro-XRP attorney, underscores the burgeoning impact of the SEC v. Ripple decision following Judge Jackson’s remarks. This bolstered judicial backing could reinforce Ripple’s stance in its ongoing legal skirmishes and may influence other digital asset-related cases.
Summarizing Judge Amy Berman Jackson’s stance in the SEC v Binance case regarding Judge Torres’ summary judgment in SEC v Ripple:
1. Judge Torres’ insights on the token’s essence were “enlightening and compelling”;
2. …
— bill morgan (@Belisarius2020)
June 29, 2024
This judgment is poised to set a precedent for current crypto litigations in the United States. **Coinbase**, **Kraken**, and **ConsenSys** are expected to utilize this judgment to bolster their legal defenses.
With Judge Jackson’s concurrence, the SEC’s argument that Judge Torres’ view on secondary sales lacks judicial support is now untenable, marking a pivotal shift in the cryptocurrency legal framework.
**The Legal Tug-of-War: Binance vs SEC**
In a high-profile case in June 2023, the SEC, under Gary Gensler’s leadership, accused Binance of offering unregistered securities and illegal operations within the U.S. Binance, along with its CEO, CZ, countered by seeking dismissal of the lawsuit, contending that the SEC had overstepped its regulatory bounds.
Amidst these legal entanglements, CZ is serving a four-month sentence for breaching anti-money laundering statutes. Despite these hurdles, Binance maintains its status as the world’s preeminent cryptocurrency exchange, with a user base exceeding 200 million and managing assets worth $100 billion.