Reigniting discussions over the court's recent decisions. Fox Business Senior Correspondent #Charles Gasparino criticized Judge Analisa Torres' ruling in the case, specifically the Summary Judgment, suggesting that it set a concerning precedent by lowering disclosure standards for retail investors. Bill Morgan, a prominent pro-crypto lawyer, responded, pointing out that the judgeโs decision was grounded in the evidence presented, which he argued was insufficient for proving that Rippleโs sales met the "expectation of profit" requirement in the Howey Test. Morgan also emphasized the importance of evidence provided by attorney John E. Deaton, who argued that retail buyers of XRP did not anticipate profits from Rippleโs actions or even know about the company behind the token.
#Gasparino further took issue with what he saw as inconsistencies in Judge Torres' interpretation of securities law. He noted that Rippleโs private institutional sales, which involved minimal disclosures, were criticized as violating securities regulations, while public programmatic sales, typically requiring more transparency, were deemed not to be securities transactions. This contradiction continues to fuel a contentious debate about the future of XRP and how it fits within existing regulatory frameworks.
The #SEC โs next steps could prove critical in shaping the outcome of this case. With an appeal on the horizon, the agency will have until January 15 to file its opening brief. If the SEC can present compelling evidence to challenge the ruling, it could overturn the decision, potentially bringing XRP under its regulatory scope. This would have significant implications for the cryptocurrency, particularly in the United States, where exchanges may be forced to delist XRP to avoid violating securities laws. Such a development could dampen demand for the token considerably.
For $XRP investors, the recent ruling on programmatic sales has made the case even more pivotal. In July 2023, Judge Torres ruled that programmatic sales of XRP did not meet the third prong of the Howey Test, which typically defines securities transactions. If the SEC prevails in its appeal, XRPโs regulatory status could change dramatically, leading to uncertainty about its future in the U.S. crypto market.
