Coin Edition -
- While denying SEC’s appeal bid, Judge Torres ruled her previous judgment on XRP cannot be cited as precedent.
- Former SEC Chief analyzes Ripple’s victory, noting its implication for the broader crypto verse.
- The Ex-SEC Chief says lawyers citing XRP’s victory decision risk ethical charges.
John Reed Stark, the former Chief of the SEC Office of Internet Enforcement, has taken to the X platform to share his discernment on Ripple’s recent victory against the U.S. regulator. The lawyer noted that Judge Torres’ decision to deny the SEC’s request for an interlocutory appeal carries significant implications for Ripple and the broader crypto community.
In particular, Stark highlighted that while denying the SEC’s appeal bid, the judge ruled that her previous victory judgment on XRP’s non-security status cannot be cited as precedent unless the facts of a new case align precisely with those of the Ripple case.
Stark believes that this outcome, while possibly seen as a partial victory for Ripple, may be short-lived.
“While this could be a pyrrhic victory at best for the XRP team… Judge Torres has specifically deemed her decision as NOT precedent for the rest crypto verse,” Stark remarked.
Happy to address the recent Ripple-related order DinePass my friend.Judge Torres’s order denying the SEC the opportunity for an interlocutory appeal has also decreed that her previous summary judgment decision should not be cited as precedent (unless the facts of the new case…— John Reed Stark (@JohnReedStark) October 6, 2023
Furthermore, the former SEC Chief noted that the SEC will likely appeal the XRP decision after the trial. He added that the regulatory agency has a reasonable chance of winning such an appeal.
Moreover, Stark emphasized that lawyers who cite Judge Torres’ decision for the broader assertion that a token is not a security may risk ethical charges, as it goes against a lawyer’s duty of candor to rely on a decision explicitly designated as having no general precedential value.
Meanwhile, Stuart Alderoty, the Chief Legal Officer of Ripple, responded to John Reed Stark’s commentary on Judge Torres’s rulings. Alderoty expressed a difference in opinion regarding the legal impact of Judge Torres’s decisions but noted a point of agreement.
Agree to disagree on the legal impact of Judge Torres' rulings, but you also seem to be saying that XRP uniquely stands as the only digital asset (other than BTC) with judicial clarity as a non-security. There we are on the same page.— Stuart Alderoty (@s_alderoty) October 6, 2023
Specifically, Alderoty argued with Stark’s view that XRP is unique among digital assets, alongside Bitcoin (BTC), in having judicial clarity as a non-security.
Besides, Stark commended the renowned pro-XRP lawyer John Deaton and the XRP team for challenging the SEC’s approach to crypto regulation. He characterized it as unilateral law-making from a podium.
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