A federal judge denied a motion by terra labs and Do Kwon to dismiss the lawsuit by US Securities and Exchange Commission (SEC). The judge has also rejected Judge Torres’ landmark ruling in the US SEC v. Ripple Labs as precedent in the lawsuit. Ripple executives including CLO Stuart Alderoty and CTO David Schwartz clarify that Terra’s case will not change XRP status as non-security.
US SEC lawsuit against Terraform Labs (TFL) and Do Kwon to proceed and Torres ruling doesn’t count as precedent, according to an order by Judge Jed Rakoff of District Court for the Southern District of New York.
Ripple chief legal officer Stuart Alderoty clarifies that Terra’s ruling will have no impact on Judge Torres’ classification of XRP as not a security. He believes that Judge Rakoff misread the reasoning in the Ripple vs SEC lawsuit including secondary market traders can’t “invest money” in anyone or anything if they don’t know who they are buying from.