It seems that the crypto case of Terra (LUNA) will go forward, as Judge Jed Rakoff rejected the request to dismiss it.
Not only that, the same judge also rejected the decision regarding Ripple, which stated that the crypto company had not violated the securities law with XRP.
Summary
Terra (LUNA): judge rejects motion to dismiss the crypto case
Yesterday, Judge Jed Rakoff, who is overseeing the crypto case of Terra (LUNA), rejected the motion to dismiss filed by Terraform Labs.
This means that the lawsuit filed by the US Securities and Exchange Commission (or SEC) against Terraform Labs, is set to continue.
Specifically, Judge Rakoff of the US District Court for the Southern District of New York ruled as follows:
“For purposes of this motion, all well-plead allegations must be taken as true, and all reasonable inferences therefrom must be drawn in the SEC’s favor.”
The motion to dismiss had been filed last April, with additional materials provided in June. Terraform Labs argued that the SEC lacked jurisdiction over both the company and its founder.
Not only that, the crypto company behind Terra (LUNA), claimed that Mirror Protocol (MIR), Terra Classic (LUNC) and TerraUSD Classic (USTC), were not securities.
Terra (LUNA): Judge Rakoff says the SEC has regulatory authority over crypto assets
If the matter concerns securities, Judge Rakoff stated that the SEC has the authority to regulate crypto assets without congressional authorization.
This statement is in contrast to another statement by Terraform Labs that argues the opposite.
Not only that, Judge Rackoff provided a detailed interpretation of the Howey test, which would go against the decision of US District Judge Analisa Torres as well, who had ruled that Ripple was not culpable of violating the Security Act by offering XRP.
Specifically, Judge Torres’ ruling on 13 July put a stop to the never-ending lawsuit between Ripple and the SEC, which began in December 2020, stating that XRP is not a security.
This caused XRP’s price to pump by +67% in a matter of hours, taking it from $0.47 up to $0.82. At the time of writing, XRP is worth $0.69.
The price of the crypto LUNA
Over the past year, LUNA has experienced a loss of trust from its community, with the price dropping from $2.27 to the current $0.5, an annual dump of -75%, according to CoinMarketCap data.
If one were to make future predictions about its price, it is hard not to be pessimistic. Indeed, the currency no longer has a thriving ecosystem behind it and its situation is quite dire.
In any case, LUNA is the 142nd largest crypto by market capitalization, with a total market cap of more than $190 billion.
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