Judge Amy Berman Jackson’s rejection of the Ripple lawsuit has stirred up discussions within the cryptocurrency community. Judge Jackson’s position was consistent with Judge Analisa Torres’ 2023 ruling, which favored Binance by dismissing BNB sales claims. Judge Jackson argued that the SEC lacks the expertise to determine which tokens should be considered securities and which should not.
A year ago, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and its former CEO, Changpeng “CZ” Zhao, for mishandling customer funds, providing information to investors and regulators, and violating securities regulations. However, in a twist, Jackson made a decision that diverged from initial expectations.
MetaLawMan, a finance lawyer who specializes in crypto, tweeted that the complaint lacks sufficient facts to generate a plausible inference that any specific secondary transactions satisfy the Howey test for an investment contract.
After throwing out all the claims, the judge decided that thirteen would be considered. Ten of these claims are proceeding fully, while one has received a complete dismissal. The BUSD stablecoin sales, a portion of the BNB sales count, and an accusation of unlawfulness pertaining to an offering named Simple Earn were all rejected.
The crypto community views the judge’s decision as a positive step for the whole crypto community, even in the face of the judge’s decision to allow specific claims to proceed.
Many crypto enthusiasts, like MetaLawMan, the Twitter-based lawyer, took to the internet to announce the SEC’s rejection of claims related to third-party sales in the market as a significant win for the wider crypto sector. This ruling, drawing from the Ripple case, sets a precedent.
Given the differing opinions among district courts on the classification of digital asset tokens sold on secondary markets as securities, MetaLawMan also argues that this decision supports Coinbase’s appeal of Judge Failla’s judgment in the SEC versus Coinbase legal battle.