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However, investors should be mindful of the pending ruling on the motion for interlocutory appeal. Judge Torres could rule at any time. A court ruling for the SEC will likely drag the SEC v Ripple case into 2025.
If Judge Torres denied the motion, it would be another loss for the SEC and the anti-crypto side of the aisle.
While there were no case-related updates to draw investor interest, Ripple remained center stage. Despite the court ruling on Programmatic Sales and XRP not being a security, Ripple continues to exclude XRP from the Ripple Liquidity Hub.
XRP Remains Out of the Ripple Liquidity Hub
This week, Ripple included Tether (USDT) and USD Coin (USDC) in Liquidity Hub (LH). However, XRP remained absent despite the recent court ruling.
Responding to XRP Community reactions to the absence of XRP, lawyer and digital asset enthusiast Bill Morgan had this to say,
“XRP has clarity as not itself a security but Ripple’s use or sales does not have final clarity given the SEC’s intent to appeal. If Ripple uses XRP in LH, can it or its customers be certain this will not attract SEC enforcement until the lawsuit & any appeal is finally resolved?”
Morgan added,
“Ripple will be more responsive to the needs and demands of its shareholders and customers than XRP holders.”
Morgan concluded,
“That is hardly surprising. As the XRP community was happy to accept when Ripple argued that there was no common enterprise between XRP holders and Ripple, there are no rights against Ripple from the purchase of an XRP token and Ripple has no legal obligations to XRP holders.”
Morgan makes a fair point and provides a live application of the Howey Test, which Judge Torres applied in the ruling on Programmatic Sales.
SEC v Coinbase: the Case the SEC Can’t Afford to Lose
There were also no SEC v Coinbase (COIN) case-related updates for investors to consider.
On balance, the outcome of the SEC v Coinbase case will likely have greater significance to the US digital asset space.
The US crypto market, US lawmakers, Coinbase, and the SEC await Judge Failla’s ruling on the Coinbase motion to dismiss (MTD).
Coinbase filed a motion to dismiss in August, arguing that the SEC overstepped its jurisdictional boundaries with the charges. Notably, Coinbase has the backing of Republican Senator Cynthia Lummis, among others.
Senator Cynthia Lummis, crypto lobbyists, and professors put their weight behind the Coinbase MTD, filing Amicus Briefs to support the Coinbase MTD.
The SEC alleges Coinbase operates as an unregistered securities broker, clearing agent, and exchange.
If Judge Failla grants the Coinbase MTD, the SEC will likely appeal. However, the SEC v Ripple case and the SEC v Coinbase case could set a precedent for the digital asset space.
In simple terms, the Howey test’s application regarding investment contracts could be consistent with both the Coinbase filing and Judge Torres’s ruling. Coinbase highlighted the absence of investment contracts that offer “future value reflecting the income, profits, or assets of a business.”
XRP Price Action
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