Crypto lawyers argue that Judge Torres’ decision on XRP diverges from the legal theories of Ripple but upholds the notion that XRP is not a security.
In the aftermath of Judge Torres’ decision on XRP, legal experts and Ripple supporters reflect on the court’s ruling, acknowledging that the judge did not adopt the legal theories that Ripple and its allies asserted.
However, they emphasize that despite this deviation, the outcome ultimately aligns with Ripple’s stance that “tokens are not intrinsically securities.”
Gabriel Shapiro, General Counsel at Delphi Labs, took to Twitter to recognize the efforts of Ripple’s allies, particularly those working alongside the prominent attorney Lewis Cohen for their influence in shaping the judge’s perspective.
Ripple won *despite* every legal theory asserted by Ripple and its amicii…
The amicii, especially with @NYcryptolawyer 's help, deserve tons of credit for getting the judge to think deeply and side with Ripple, but the judge did not agree with their legal theories… she ended… pic.twitter.com/LRiSvazFb6
— _gabrielShapir0 (@lex_node) July 16, 2023
However, Shapiro points out that the judge arrived at the same conclusion for different reasons, deviating from the legal theories presented by Ripple and its supporters.
The Deviation
Shapiro notes that rather than relying on the “predicate contract” theory advocated by Ripple and others, the judge based her ruling on the connection between an “investment of money” and “efforts” within the Howey test, which none of the involved parties had specifically pleaded.
Ripple CTO Agrees
In response, David Schwartz, Ripple’s Chief Technology Officer, acknowledged Shapiro’s observations and confirmed that the legal theories emphasized by Ripple in its motion for summary judgment did not receive significant focus in the ruling. Schwartz also remarked that it is natural for Ripple to exert more effort in advocating for legal theories with lower chances of success.
These are from Ripple's motion for summary judgment. I agree the ruling doesn't focus on the legal theories Ripple put the most effort into, but it makes sense that you need to try the hardest for the things least likely to work. pic.twitter.com/4rYXoxieyl
— David "JoelKatz" Schwartz (@JoelKatz) July 16, 2023
While the judge’s decision may not have explicitly aligned with Ripple’s preferred legal arguments, it still supports the core principle that XRP is not inherently a security. Ripple, its legal team, and the crypto community viewed the ruling as favorable, as it has broader implications for crypto regulation, particularly in the United States.
Meanwhile, the ruling has sparked renewed discussions about Ripple potentially going public with an Initial Public Offering (IPO), as The Crypto Basic reported.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
