The XRP lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) remains a hot topic with FOX Business journalist Charles Gasparino positing that continued pressure under the SEC could mean victory for the agency. However, Bill Morgan, a prominent lawyer in the XRP community, claims that the judge’s rulings are based on strong legal principles, contradicting Gasparino’s narrative.
On the X show, Gasparino defended his previous reporting and reiterated his view that Judge Torres’ ruling in favor of Ripple’s token sales could eventually be overturned. According to Gasparino: “I will never change my opinion that Judge Torres’ ruling allowing lower disclosure standards for retail is something that the markets should embrace. I also think that if the SEC continues to challenge it, there’s a good chance it will be overturned. If you don’t like it, that’s bad.”
He went on to say that he covered both sides of the legal dispute, citing his interview with former Commodity Futures Trading Commission Chairman Chris Giancarlo — who predicted that the SEC would drop its Ripple lawsuit when President-elect Donald Trump resumes office — as an example of balanced reporting.
Pro-XRP Lawyer Morgan Responds to Gasparino
Bill Morgan, a prominent pro-XRP lawyer who has often weighed in on the high-profile lawsuit, has strongly disputed Gasparino’s claims. Responding directly to Gasparino, Morgan claimed that Judge Torres’ ruling neither lowers disclosure standards for retail traders nor addresses secondary market sales in a way that would limit normal securities disclosures:
“Respectfully, Judge Torres’ ruling does not ‘permit’ lower disclosure standards to apply to retail trading. It does not even extend to other secondary market sales. The need for securities-level disclosure only arises if the software sales are investment contracts.”
Morgan also claimed that if Ripple ultimately wins the appeal regarding the judge’s ruling that institutional sales constitute securities transactions, any concerns about different disclosure requirements will go away: “If Ripple wins the appeal, your concerns about different disclosure standards will go away. There will be no need to disclose securities for any Ripple XRP sales in this case because any sales will not be securities.”
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The crux of Morgan’s criticism focuses on the SEC’s failure to provide convincing evidence that retail buyers of XRP relied on Ripple’s efforts to profit. According to Morgan, the SEC’s expert did not interview a single retail holder: “The SEC lost in the software sales category because their evidence of the anticipation of profit for software buyers was insufficient. It was bullshit. They were, frankly, lousy lawyers.”
He highlighted that attorney John Deaton presented extensive evidence demonstrating that many XRP holders had no knowledge or interest in Ripple’s business operations when they purchased the token.
Morgan also criticized Gasparino for questioning Judge Torres's competence: "You may not like the outcome of the ruling, but that does not mean the judge made a mistake. It certainly does not justify calling her stupid. [...] What legal or factual error do you mean in her reasoning anyway? You don't mean that. You are just disparaging the judge for a perceived negative outcome."
In a later post, Gasparino defended his position and explained why many securities union workers were skeptical of Judge Torres’ ruling: “Under Rule 33, you must provide full disclosures if you intend to raise the maximum amount from the general public, and limited disclosures for private offerings. [...] The institutional private offering (basic requirements only) was found to be defective while the public sale (full financial statements) was ruled not to be securities transactions because the people who purchased XRP on the secondary market, as you claim, therefore had no idea what Ripple was doing in connection with their XRP purchases. [...] It’s crazy because if Ripple went out of business tomorrow, what would XRP be used for?”
Gasparino also stressed his belief that if Trump were to take over the SEC again and “continue to challenge, he would win because under the fundamentals of securities law, the public is always entitled to more than the private, not equal and certainly not less.”
At the time of publishing this report, XRP was trading at $2.02.
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