Famous American wealth advisor Mickle suggests that Judge Analisa Torres’ declaration about XRP’s legal status dealt a heavy blow to the SEC’s case against Ripple.
Recall that Judge Torres declared that XRP in itself is not a security but can be sold as part of an investment contract, as reflected in the decision relating to institutional sales, which were found to be a violation of federal securities law.
Judge Torres Weakened the Foundational Basis of SEC Case
In a recent clip shared on X, Mickle emphasized that Judge Torres’ declaration about XRP not being security was “Dicta,” a legal term suggesting that an opinion is unnecessary to resolve the case.
However, Mickle claimed that the major reason the SEC introduced the Ripple lawsuit was to establish that XRP is indeed a security. The wealth advisor contended that the SEC cannot appeal Judge Torres’ factual determination, which indicates that XRP is not a security.
“So that kind of tanks the SEC’s entire case and throws this whole thing in the trash. So for the SEC to appeal this now, it just wouldn’t make any sense,” Mickle remarked.
Additionally, Mickle emphasized that the SEC’s case against Ripple is weak because of Judge Torres’ decision that XRP is not a security.
He added that it would be illogical for a party to bring a weak case to appeal, suggesting that appeals usually focus on stronger legal grounds.
Furthermore, the wealth expert characterized the Ripple lawsuit as the weakest case the SEC has brought against any entity. This commentary suggests that Judge Torres’ factual determination about XRP potentially weakened the foundational basis of the SEC’s lawsuit against Ripple.
SEC Not Willing to Appeal Ruling on XRP
It bears mentioning that the SEC had attempted to file an immediate appeal challenging Judge Torres’ summary judgment decision.
Notably, the SEC centered the appeal filing on the court’s decision regarding programmatic sales and other distributions of XRP, which were found to be non-investment contracts. At the time, the securities regulator emphasized that it was not pursuing any appeal relating to the decision regarding the underlying asset, XRP.
Although the court denied the SEC’s interlocutory appeal request, several experts speculated that the regulator would officially appeal Judge Torres’ summary judgment decision after the final verdict.
Despite this, they opined that the SEC will not appeal Judge Torres’ declaration that XRP is not a security.
