<\/p>\n
Earlier this year, the SEC\u2019s crusade against cryptocurrencies seemed to be coming to a head after Judge Analisa Torres sided mostly in favor of Ripple, who ruled that XRP is, broadly speaking, not a security and that its purchase could only be considered an investment contract in certain circumstances.<\/p>\n
The two parties, however, are still duking it out<\/a>, with a final decision expected in early 2024.<\/p>\n Given the success of Ripple in its landmark case, Terraform Labs attempted to use a similar defense in its own legal battle. Judge Rakoff, however, was not convinced.<\/p>\n According to court transcripts<\/a>, Judge Rakoff granted<\/a> a summary judgement<\/a> (one without a full trial) in favor of the SEC regarding TERRA and LUNA, both of which are to be considered securities going forward. Terraform Labs can still appeal this decision.<\/p>\n \u201cThere is no genuine dispute. [\u2026] They are investment contracts. [\u2026] The defendants want to cast aside decades of settled law. Howey\u2019s definition of \u2018investment contract\u2019 was and remains a binding settlement of the law, not dicta.\u201d<\/p>\n<\/blockquote>\n The SEC\u2019s lawsuit against Terraform Labs also attempted to categorize MIR tokens as securities. They were a part of Do Kwon\u2019s Mirror ecosystem, which was an attempt to (sic) mirror non-crypto assets on the blockchain, a practice more or less analogous to trading wheat and other commodities on a stock exchange.<\/p>\n Judge Rakoff ruled that these tokens passed<\/a> the Howey Test, as any profit garnered by purchasing and holding MIR tokens would be due to the performance of the assets they were tied to, not due to Terraform Labs\u2019 efforts, according to Bloomberg.<\/p>\n \u201cIn other words, that MIR passes the Howey test with flying colors.\u201d<\/p>\n<\/blockquote>\n The judge also took into account the testimony of former and current Jump Trading employees.<\/p>\n Jump Trading, a firm that has not been accused of any wrongdoing, was heavily invested in the Terraform Labs ecosystem and allegedly risked $200 million to restore TerraUSD\u2019s dollar peg.<\/p>\n The testimony of the unnamed whistleblowers did not, however, affect the ruling, although Judge Rakoff pointed out that their depositions could be revisited at a later date.<\/p>\n \u201c(The evidence) is compelling but circumstantial, relying in large part on the testimony of Jump whistleblowers whose credibility the jury will need to determine.\u201d<\/p>\n<\/blockquote>\n The jury trial against Terraform Labs is due to commence in January.<\/p>\n <\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Earlier this year, the SEC\u2019s crusade against cryptocurrencies seemed to be coming to a head after Judge Analisa Torres sided mostly in favor of Ripple, who ruled that XRP is, broadly speaking, not a security and that its purchase could only be considered an investment contract in certain circumstances. The two parties, however, are still […]<\/p>\n","protected":false},"author":2,"featured_media":221054,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-221053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/221053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=221053"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/221053\/revisions"}],"predecessor-version":[{"id":221056,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/221053\/revisions\/221056"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/221054"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=221053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=221053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=221053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Terraform Labs Attempted to Capitalize on Ripple\u2019s Headwinds<\/h2>\n
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Mirror Tokens Spared By Decision<\/h2>\n
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\nBinance Free $100 (Exclusive): Use this link<\/a> to register and receive $100 free and 10% off fees on Binance Futures first month<\/b> (terms<\/a>).<\/div>\n<\/div>\n