In a recent development in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), pro-XRP lawyer Bill Morgan emphasized the significance of Judge Torres' ruling that XRP is not a security. This ruling has had a notable impact on the FIT 21 bill, which aims to provide regulatory clarity for digital assets.
Judge Torres’ Ruling and Its Impact on FIT 21
The FIT 21 bill, a landmark bipartisan crypto bill, recently passed a vote in the U.S. House of Representatives. This bill represents a significant step towards establishing a clear regulatory framework for digital assets. In the midst of this, Bill Morgan highlighted the influence of Judge Torres' ruling on the bill. He shared an image on the X platform, noting, "The Torres influence on FIT21. XRP is not itself a security."
This statement refers to a key section of the bill which states: "A digital asset sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract." This aligns directly with Judge Torres' summary judgment in the Ripple vs. SEC lawsuit, where she concluded that while XRP itself is not a security, its sale or offer to institutions could be classified as such. This distinction has been crucial in shaping the regulatory conversation around digital assets.
Ripple Lawsuit: Legal Strategy and Community Support
The Ripple community, including legal experts and advocates, has played a vital role in advocating for crypto regulation and clarity. CryptoLaw, founded by the Deaton Law Firm, has credited the Ripple vs. SEC lawsuit and the efforts of the XRP community with influencing the creation of the FIT 21 bill.
A recent report from CryptoLaw highlighted that Judge Torres' decision and the persistent advocacy from the XRP community were essential in drafting the bill’s provisions. Specifically, the section clarifying the treatment of digital assets sold pursuant to an investment contract reflects the legal arguments and conclusions from the Ripple case.
Addressing Concerns and Clarifying Misconceptions
In another post, Bill Morgan addressed concerns regarding the FIT 21 bill, particularly its non-retrospective nature. He clarified that the court’s decision, which found that XRP is not a security, remains unchallenged by the SEC and will not be affected by the new legislation. Morgan’s comments were in response to a post suggesting that under FIT 21, XRP would not be considered decentralized. He emphasized that the bill, recently passed by the US House, will not alter the court’s existing rulings regarding XRP’s legal status.
Conclusion
Bill Morgan's recent comments have intensified discussions surrounding the Ripple lawsuit and its broader implications for the crypto industry. Judge Torres' ruling has not only influenced the ongoing legal battle but has also played a crucial role in shaping new regulatory frameworks like the FIT 21 bill. As the Ripple community continues to advocate for clarity and fairness in digital asset regulation, the impact of this landmark case will likely be felt for years to come.
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