The long-awaited decision in the SEC-XRP case in the crypto market came on July 13.
The court judge made a distinction in the sale of XRP, stating that its sale on exchanges is not a security and does not violate the securities law. In addition, it was stated that the institutional sale of XRP is a security.
However, US District Judge Jed Rakoff from the Southern District of New York criticized the decision of the judge who made the XRP decision and wrote that it was wrong.
Evaluating the decisions made by US judges, investment bank Berenberg wrote that judge Jed Rakoff firmly rejected the XRP decision.
As Coinbase reported, analysts led by Mark Palmer noted that Judge Rakoff's XRP disclosures complicate Coinbase's defense, writing:
“In his decision, US District Judge Jed Rakoff of the Southern District of New York rejected Torres' distinction between institutional sales on crypto exchanges and sales to retail investors.
Judge Jed Rakoff described this distinction as a misinterpretation of the Howey test, which is used to determine whether an asset is a security.
At this point, Judge Rakoff's XRP ruling complicates Judge Torres' use of the XRP ruling against the SEC in Coinbase's case. Because Judge Rokoff argues in his decision that the Howey test makes no distinction between buyers.”
Lastly, Berenberg maintained his $39 price target for Coinbase shares, reiterating his view that Coinbase stock is uninvesable in the near-term.
*Not investment advice.