The legal team representing Terraform Labs and its founder, Do Kwon, has brought up Judge Analisa Torres’ decision in the SEC v. Ripple Labs case in a supplementary document filed on July 18th, as a way to bolster their argument to dismiss the US regulator’s lawsuit over the Terra blockchain.
The document drew similarities between the SEC’s claim that Terra tokens (also known as UST, then renamed USTC, LUNA, now LUNC, wLUNA, and MIR) are investment contracts under the Howey Test and XRP’s legal case, making the case that the sales of these tokens do not meet the criteria. It also examined the differences between the institutional sales in the Ripple and Terra cases, putting forth evidence that the Terra-related sales were exempt and distinct from investment contracts.
Beyond the argument based on the Resolution victory, Do Kwon’s legal team had put forth in a previous filing proof of congressional debates regarding cryptocurrency laws, questioning the wisdom of regulatory action taken prematurely. This XRP win has amplified are awaited precedent that could reverberate into other litigation cases related to the US regulator and the crypto universe.
