Ripple Community Predicts Judge Torres’ Ruling on XRP’s Security Status in SEC Lawsuit

The post Ripple Community Predicts Judge Torres’ Ruling on XRP’s Security Status in SEC Lawsuit appeared first on Coinpedia Fintech News

In the ongoing SEC v. Ripple lawsuit, members of the XRP community are eagerly awaiting Judge Analisa Torres’ summary judgment decision regarding the regulatory classification of XRP. One prominent XRP community member, Ashley Prosper, in a tweet has shared his prediction on the matter, expressing confidence that Judge Torres will conclude that XRP sold on secondary markets does not constitute a security.

Ashley Prosper’s Bold Prediction on XRP

Prosper’s prediction is centered around an argument made by an SEC expert, who claimed that investors relied on Ripple’s efforts when purchasing XRP. However, this claim was dismissed by the judge after the expert admitted to not speaking with any XRP holders. Furthermore, the expert stated that his report would have been different had he communicated with XRP investors.

To support his prediction, Prosper points to the submission of 3,000 affidavits from XRP holders by Ripple, which he believes will sway the judge in ruling that XRP secondary market sales are not securities. In the event that the affidavits are deemed insufficient, Prosper suggests that the judge may refer to the 15 amici briefs submitted by various entities in support of Ripple. Some of these briefs reportedly highlight that XRP was purchased for real-world use cases rather than as an investment.

Is it a System Failure to Determine XRP an Asset or Security? 

On the other hand, he also notes that the SEC has failed to produce any investment contract between XRP holders and Ripple, further bolstering his argument that the SEC has not met the criteria outlined in the Howey Test—a legal test used to determine whether an asset is a security.

Based on these factors, Prosper firmly believes that Judge Torres will rule that XRP sold on the secondary market, including cryptocurrency exchanges, should not be considered the sale of securities. However, it is important to remember that these opinions are not official rulings or statements from Judge Torres or any authoritative source involved in the case. 

How the XRP Community Reacted?

The recent ruling in the SEC v. LBRY lawsuit, where the presiding judge did not comment on the secondary market transactions or the security status of the token in question, has sparked discussions within the XRP community. While some experts, such as Attorney Jeremy Hogan, speculate that Judge Torres may follow a similar approach, others, like pro-XRP lawyer Fred Rispoli, believe that the judge will comment on XRP’s security status as it has been raised as a defense by Ripple.

Finally, the XRP community’s predictions and reactions are based on individual ideas and interpretations of the case. However, the final outcome of Legal proceedings and court rulings will determine the SEC v. Ripple lawsuit’s conclusion and judge’s ruling.