19. Juli 2024

Do Kwon Cites XRP Win in Dismissing Terra’s SEC Case

• Do Kwon cites XRP’s win against the SEC as grounds to dismiss Terra’s case.
• Ciaran Lawler has fact-checked the article, while Stefan Trapp has edited it.
• The article was written by Tadas Klimasevskis on 21 July 2023.

Do Kwon Cites XRP Win for Dismissal of Terra’s SEC Case

Do Kwon, a legal expert in the crypto industry, recently used Ripple’s win over the US Securities and Exchange Commission (SEC) as grounds to dismiss a similar lawsuit filed against Terra, an Ethereum-based stablecoin project.

Details of the Article

The article was published on July 21, 2023 at 2:00 PM GMT and written by Tadas Klimasevskis from DailyCoin. Ciaran Lawler fact-checked it and Stefan Trapp edited it.

XRP Win Against SEC

Ripple, the parent company of XRP – one of the world’s largest cryptocurrencies – won its court battle against the US regulator regarding whether or not XRP is classified as a security. This ruling is now being used as precedent in other cases involving crypto assets and their compliance with securities laws.

Terra Case Dismissal Requested

Kwon argued that due to this ruling in favor of Ripple, the SEC’s case against Terra should be dismissed since there is no clear definition from regulators on what constitutes a digital asset as a security or not. He also pointed out that Terra had taken numerous steps to ensure compliance with existing regulations prior to launching its stablecoin project.

Conclusion

It remains unclear if Do Kwon’s argument will be successful and if Terra will eventually be able to launch its stablecoin without fear of legal repercussions from US authorities. Nevertheless, his argument does illustrate how Ripple’s victory over the SEC could have far-reaching implications for many other projects in the cryptocurrency space going forward.