Chief technical officer of Ripple David Schwartz recently tweeted about the continuing SEC investigation against Ripple.
In response to rumours that a ruling by U.S. District Judge Jed Rakoff would be appealed, Schwartz said, “I see Rakoff as separating the two instances based on both distinct facts and different litigation stages. Rakoff need not be seen as opposing the decision or demonstrating a disagreement, in my opinion. His remarks clarified the nuanced differences between the two scenarios.
It was noted in a report by U.Today that Judge Rakoff’s position differs from one made by U.S. District Judge Analisa Torres before.
Judge Rakoff invalidated a crucial distinction established in the Ripple case decision when presiding over the SEC prosecution brought against Terraform Labs.
In a previous ruling, Judge Torres distinguished between coins sold directly to institutional investors, which she regarded as securities, and coins sold to regular investors through secondary market transactions, which she did not.
However, the Terraform Labs lawsuit overturned this difference, raising questions about the validity of the Ripple decision. This complicates the ongoing legal battle between Ripple and the Securities and Exchange Commission (SEC).
The SEC recently explained its justifications for a move to file an interlocutory appeal in relation to the “programmatic” offers and sells of XRP on trading platforms, which has caused the legal landscape to continue to change. Legal experts and the cryptocurrency community are still divided on the subject.
