While the expectations mount of the final conclusion to the legal standoff between the United States Securities and Exchange Commission (SEC) and Ripple, the cryptocurrency community has criticized the regulator’s argument in the case against crypto exchange Coinbase, which seems to refer to the ruling in the Ripple case.
Specifically, lawyer Bill Morgan has recently posted a passage from the SEC’s latest brief in the Coinbase matter asking for clarification, to which crypto researcher Anders L replied by calling it “a pathetic attempt” at discrediting Judge Analisa Torres’s decision on Ripple, as he explained in an X post on October 7.
Doesn’t it seem like a pathetic attempt to make an argument against Torres’ ”in dicta” ruling that XRP itself is not a security in the Ripple case?— Anders 🏁🇪🇺 (@X__Anderson) October 7, 2023
To argue that crypto assets themselves are investment contracts?
Indeed, quoting Anders L, Morgan agreed with his view, adding that it was one of “the SEC’s ever increasingly desperate attempts to circle back & create any conceptual framework it can con a court to accept that makes the sale of any crypto an investment contract.”
Finally, the legal expert concluded:
“If it succeeds, only XRP and Bitcoin will have legal clarity as not themselves being securities.”
Commodity, not security
More recently, Morgan agreed with the argument and the Judge’s opinion shared by cryptocurrency enthusiast known as Amelie, a.k.a, _Crypto_Barbie, who pointed out that “Judge Torres knows that Ripple does not own the XRP Ledger,” which confirms its “fully decentralized” nature and “gives it the status of a commodity like gold/silver.”
Good point. This is as close as you can get to legal clarity that the XRPL is decentralized without actually using the word decentralized. https://t.co/lvGSgr31Pp— bill morgan (@Belisarius2020) October 8, 2023
Meanwhile, the XRP token, which has been the focus of the long-running courtroom battle, was at press time changing hands at the price of $0.493, growing 1.33% in the last 24 hours but still holding onto the 4.25% decline across the previous seven days and a loss of 1.21% over the past month.
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