Ripple has won a huge victory in the XRP lawsuit. But what exactly do Judge Torres’ rulings mean? On Twitter, a number of lawyers shared their analysis of recent developments.
Ripple and SEC are right
The developments are mostly good news for XRP. However, it is not home run. Attorney Jeremy Hogan stilt that the Securities and Exchange Commission (SEC) and Ripple are both in their favor on different counts.
“Judge Torres… gave the baby to both! Yes, she finds the sales of XRP made directly to buyers by Ripple securities. That’s good for $728 million dollars.”
But, Hogan continues, ‘she finds programmatic sales (selling via exchanges, ed.) no securities. Congratulations to all 75,000 XRP holders.” This group of XRP is worth about $757 million, according to the lawyer.
In addition, “Other” XRP sales would also not involve securities. This subset of XRP is worth $600 million. One point on which the SEC is proved right is that a security does not necessarily need a contract to be a security.
XRP in itself is not an asset
ConsenSys attorney Bill Hughes shares Hogan’s findings. He also highlights the following ruling of the judge: “XRP is NOT a security in itself, even when it is offered through a securities transaction.”
Hughes says he will be very surprised if the SEC does not immediately appeal. Today’s developments are certainly not the end of the XRP lawsuit.
The lawyer does note that the SEC’s strategy has received a “serious blow”. “The credibility of the SEC chairman has never been lower.”
The SEC’s enforcement strategy is dealt a serious blow.
The SEC’s pseudo-legislating via overly expansive rulemaking is seriously undermined.
The Chairman’s credibility in the Administration and on Capitol Hill will be at an all-time low.
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) July 13, 2023
Although much remains unclear, the summary judgement of the judge in the XRP lawsuit is a hugely positive development for Ripple. This can be seen, among other things, in how the market reacts to the news.
Ripple is up more than 60% compared to 24 hours ago at the time of writing. Most of this increase occurred within hours of the news.