A video of David Sacks commenting on the July 2023 ruling in the SEC v. Ripple lawsuit goes viral within the XRP community after his appointment as White House AI and Crypto Czar.
Famous XRP community figure Cowboy shared the video on X immediately after U.S. President-elect Donald Trump appointed Sacks as Crypto Czar.
Sacks Says Ripple Won SEC Lawsuit
Sacks commented on the Ripple/XRP verdict during his appearance on the All-In Podcast on July 14, 2023, a day after Judge Torres released her summary judgment decision.
During the podcast, Sacks pointed out that Ripple won the lawsuit, indicating that the judge held that its sales of XRP do not constitute offers in investment contracts. He asserted that the ruling vindicated Ripple.
This suggests that the ruling validates Ripple’s arguments that XRP is not a security and should not be subject to the SEC’s scrutiny. Furthermore, Sacks highlighted XRP’s significant gains following the verdict, stating that the coin’s price has skyrocketed by 35% in reaction to the ruling.
Court Ruling Exonerated Ripple
However, Jason, one of the hosts of the All-In Podcast, refuted the claim, suggesting that Ripple did not secure a landslide victory against the SEC.
According to him, the judge only held that Ripple’s sales on digital exchanges do not constitute investment contracts. However, its offers and sales of XRP to sophisticated investors were deemed securities.
Nonetheless, Sachs maintained that the ruling exonerated Ripple of the SEC’s claims. Meanwhile, in a separate X post, Sacks characterized the ruling as a big win for crypto.
Big ruling for crypto. https://t.co/HHHjqCKvae
— David Sacks (@DavidSacks) July 13, 2023
SEC Seeks to Appeal Ripple Victory
Meanwhile, the U.S. SEC refused to accept Judge Torres’ decision on Ripple’s programmatic sales and other distributions of XRP. Consequently, it filed an appeal, seeking to overturn the judgment in the Second Circuit.
The SEC is expected to file its appeal brief on January 15, 2025, five days before Trump’s inauguration. Interestingly, crypto enthusiasts are optimistic that Trump’s administration will create favorable regulations for the industry.
This speculation has gained momentum recently, especially as Trump appoints several pro-crypto advocates to fill top positions, ranging from the SEC to the Treasury Secretary.
Additionally, Sacks will lead the White House efforts to provide clear rules for the American crypto industry, potentially making the U.S. the global leader in this sector.
Amid the appointment of several crypto advocates into key positions, speculation indicates that the SEC might drop its lawsuit against Ripple, potentially ending any regulatory uncertainty surrounding XRP.
This speculation contributed immensely to XRP’s recent spike to $2.86 this week. Currently, XRP is trading at $2.30, up 43.57% in seven days.
