The court has now recognized Judge Torres' ruling on XRP as the lead lawyer for Ripple in national law

Ripple CLO stressed the importance of the Binance ruling, stating that the court now recognizes that Judge Torres’ decision is consistent with national law. Ripple’s chief legal officer Stuart Adroiti praised Judge Annalisa Torres for correctly ruling that XRP itself is not a security. In a recent article, he claimed that other U.S. courts now accept her decision because it is consistent with established securities law, specifically the Howey Framework. Adroti attached an excerpt from the SEC’s ruling against Binance, showing that the court recognized that Judge Torres’ decision was consistent with national law. “The Court is inclined to agree with the Ripple Labs Court’s approach because the SEC’s ‘status quo’ approach appears inconsistent with the clear Supreme Court instructions cited in its complaint,” the Binance order, issued by Judge Amy Berman Jackson on June 28, states.

Furthermore, Adroti noted that despite the SEC’s attempts to complicate established securities laws with its inconsistent legal theories, courts are gradually seeing the regulator’s side, as reflected in the ruling in the Binance lawsuit. Judge Amy Berman Jackson cited the Ripple decision in dismissing the SEC’s allegations regarding BNB’s secondary market claims.

For context, Judge Amy Berman Jackson issued the much-anticipated SEC ruling against Binance last Friday. The judge ruled that charges involving anti-fraud violations, selling BNB after the ICO, and failure to register with the SEC will proceed. However, she dismissed allegations related to Binance’s Simple Earn program and secondary market sales of BNB and BUSD. Interestingly, she cited Ripple’s decision in dismissing charges related to Binance’s BNB and BUSD secondary market sales.

Recall that Judge Torres ruled in a landmark decision last year that Ripple’s programmatic sales of XRP on digital exchanges did not constitute an investment contract. In the SEC's case against Terraform Labs, Judge Jed Rakoff disagreed with Torres' reasoning. However, the recent Binance verdict is being considered a ‘major victory’ for clarifying secondary market sales of digital assets, according to FOX Business reporter Eleanor Treit.

The Ripple CLO stressed the importance of the Binance verdict, highlighting how it addressed market confusion regarding the infamous William Henman 2018 speech. In the controversial speech, Henman declared that Ethereum (ETH) is not a security, citing the cryptocurrency’s decentralized structure. In his comments, Adroti described Henman’s presentation as a fairy tale, suggesting that tokens could magically convert between securities and non-securities. He noted that SEC lawyers disagreed with Henman's rationale before the speech and warned that such an announcement would cause market confusion. The Ripple CLO stressed that the recent Binance ruling further invalidated Henman’s view that tokens can be converted between securities and non-securities.