• A federal judge has ruled that non-fungible tokens (NFTs) of NBA Top Shot Moments could be considered securities under United States securities laws.
• An American lawyer, MetaLawMan, has clarified that this ruling will not affect the Ripple lawsuit.
• The latest on the Ripple-SEC case is that the unsealing of the contentious Hinman speech records is now again at the center of it all.
Background on NFT Lawsuit
A federal judge has ruled that non-fungible tokens (NFTs) of NBA Top Shot Moments could be considered securities under United States securities laws. The ruling came as the judge denied a motion from Dapper Labs CEO Roham Gharegozlou to dismiss a class-action lawsuit claiming that its NBA Top Shot NFTs are securities.
Connection to Ripple vs SEC
Some cryptocurrency enthusiasts feared that this ruling could impact the outcome of the ongoing Ripple v. SEC lawsuit, however, an American lawyer, MetaLawMan, has clarified that this ruling will not affect the Ripple lawsuit. According to MetaLawMan, the Top Shot decision was a ruling on a motion to dismiss the complaint and assumed all allegations in the complaint were true, whereas the Ripple case is at the summary judgment stage, where the judge looks at evidence submitted by both parties. The Top Shot decision does not address secondary market sales of these NFTs and emphasizes not all NFTs offered or sold by any company would constitute a security. Furthermore, while Ripple trades on a public blockchain while Top Shots traded on a private blockchain run by issuer; both factors contributing towards why this ruling should have no impact on upcoming court proceedings regarding Ripple’s case against SEC.
Current State Of Case
The latest news regarding Ripple’s case against SEC is journalist Roslyn Layton’s updated request to intervene and ask for access to unsealed Hinman speech materials which contains key information about regulatory status of XRP tokens held by investors from around world; information which may play role in deciding outcome of this case..
Why It Is Good News For XRP Investors?
The judge’s decision indicates that not all NFTs are securities and each scheme must be assessed on individual basis according to Howey Test; making it so even if NFTs can be considered security sometimes there is still potential for tokens like XRP held by investors worldwide being approved as non-security due their trading occurring in public blockchain networks unlike private ones used in NBA Top Shots situation .
Ultimately ,the recent judgement against Dapper Labs should have no bearing on how court decides upon current dispute between SEC & Ripple ; with journalist Roslyn Layton’s petition potentially helping clarify matters further if accepted & allowed access to Hinman Speech materials .