Bill Morgan highlighted Kraken’s failed reliance on Ripple’s ruling.
Judge Orrick differentiates Kraken’s case from Ripple’s.
The judge clarified that Ripple’s decision was highly specific to its facts and did not automatically apply to other digital asset cases.
Legal analyst Bill Morgan has weighed in on the ongoing legal battle between cryptocurrency exchange Kraken and the U.S. Securities and Exchange Commission (SEC), reiterating a critical distinction.
Kraken attempted to lean on a recent court decision involving Ripple Labs to defend itself against SEC allegations. However, Judge William Orrick found this argument to be “readily distinguishable” from the facts at hand. Reiterating the difference, Morgan remarked:
“Kraken tried to rely on Torres’ decision on Ripple’s programmatic sales of XRP (including on the Kraken exchange) that the SEC didn’t satisfy the third prong of Howey. It didn’t help Kraken.”
The U.S.-based exchange had cited Judge Analisa Torres’ ruling in the Ripple Labs case, in which it was determined that the programmatic sales of XRP did not satisfy the third prong of the Howey test. For context, the ruling c…
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