The U.S. Securities and Exchange Commission (SEC) on Friday responded to Terraform Labs and Do Kwon’s motion to dismiss the lawsuit based on Judge Torres’ ruling in SEC v. Ripple Labs. Coinbase chief legal officer Paul Grewal and pro-XRP lawyers responded to the SEC’s conflicting decision in the XRP lawsuit.
US SEC denies commonality of Ripple ruling in Terra case
According to a petition filed with the District Court for the Southern District of New York on July 21, the US SEC contradicts Judge Analisa Torres’ ruling in the Ripple lawsuit. In addition, SEC will appeal the court ruling that XRP is a security, denying its relevance in the Terraform and Do Kwon lawsuit.
SEC argues that institutional selling supports the SEC’s arguments and that the programmatic selling decision is wrong and should not be followed by the court. In addition, it argues that the ruling cannot be reconciled with Howey and decades of case law on federal securities laws.
“Those parts of Ripple have been ruled wrong and this court should not follow them. SEC personnel are considering the various avenues available for further review and intend to recommend that the SEC seek such review.
Terra and Do Kwon’s attorneys this week filed additional authority in support of the SEC’s motion to dismiss the lawsuit. It alleged that Judge Torres’ ruling in the SEC v. Ripple lawsuit directly overrides the defendants’ motion to dismiss the lawsuit and justify that UST, LUNA, wLUNA, MIR, or mAssets are not investment contacts.
Also Read: US SEC Issues First Hint About Seeking Appeal Against XRP Rulings
Comments from Coinbase CLO and XRP Lawyer
Paul Grewal, Coinbase’s Chief Legal Officer, noted that the SEC is calling again for its approach to Howey on the XRP ruling. Billionaire Mark Cuban also replied to Grewal, saying that Ripple made it clear that not every buyer is an investor and that blockchain data clearly indicates the token’s usefulness.
They also refer to each buyer as an investor in their application. That is not the case and Ripple has made that clear. Effects have only one purpose, to be an effect. For a DeFi or CEX buyer, it is impossible to know why a buyer is buying. But it is possible to look at the Blockchain and see…
— Mark Cuban (@mcuban) July 22, 2023
Pro-XRP lawyers John Deaton and others are also responding to the SEC’s view that the Ripple ruling is “incorrect” and will appeal the court’s decision. the barrel said even if the SEC were to successfully appeal Judge Torres’ ruling, only a pretrial detention would happen. Judge Torres is likely to find that the Securities and Exchange Commission failed to demonstrate the common venture factor between Ripple and XRP holders in the secondary market.
Also Read: Ripple seeks UK and Ireland licensing approval after XRP win against SEC
Varinder has 10 years of experience in the Fintech sector, with more than 5 years dedicated to blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles and newspapers. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
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This post Coinbase CLO, XRP Lawyers Respond as SEC Denies Torres Doctrine
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