In a stunning turn of events, Judge Analisa Torres delivered a monumental verdict yesterday, ruling that XRP is not a security. The long-awaited decision sent shockwaves through the crypto community, triggering a flurry of reactions, emotions and fervent discussions. However, the impact of this ruling extended far beyond the immediate circles of XRP enthusiasts and Ripple representatives.
Although the Securities and Exchange Commission (SEC) found itself on the losing side, it did not remain silent. In a rather salty statement, the regulatory body emphasized that the court agreed with certain aspects of the SEC's case. Notably, it confirmed that institutional token sales indeed violate federal securities laws, and the venerable Howey test remains a legitimate and sufficient evaluation tool.
Unsurprisingly, the SEC's pronouncement generated a wave of strong reactions. Among them, Katie Biber, chief legal officer at Paradigm, shared her opinion on the matter.
SEC Statement on Ripple has vibes of young campaign hack spinning on bad facts, vs powerful government agency expected to tell the truth. Do better. pic.twitter.com/NIYc5260rL— Katie Biber (@katiebiber) July 13, 2023
Meanwhile, the most noteworthy response emerged from Ripple's chief legal officer, Stuart Alderoty, who minced no words in expressing his sentiment toward the SEC. In a scathing retort, Alderoty proclaimed, "Take the loss. You earned it," echoing the sentiment of many celebrating Ripple's remarkable triumph.
As the dust settles on this landmark ruling, anticipation grows regarding the SEC's next move. It is widely expected that the regulatory body will promptly file an appeal with the Second Circuit, prolonging the legal saga that has captivated the attention of the crypto world.