Attorney Bill Morgan clarifies that the upcoming ruling in the Ripple case will not redefine the legal status of crypto assets in the U.S.
Morgan made the assertion in response to a bold claim from market commentator John Squire. In an X post today, Squire suggested that U.S. District Judge Analisa Torres is on the verge of delivering her final decision in the Ripple lawsuit.
According to Squire, the upcoming ruling could set a landmark precedent that would alter the legal status of crypto assets in the U.S.
This suggests that Judge Torres’ upcoming decision could play a major role in determining the legal status of cryptocurrencies, particularly in deciding whether they will be classified as commodities or securities.
Misleading Claim
However, attorney Morgan refuted this claim as “incorrect.”
The legal expert clarified that the upcoming decision narrowly focuses on the parties’ joint motion for an indicative ruling. In that decision, Morgan contended that the judge would rule on whether there are exceptional circumstances to reduce Ripple’s penalty to $50 million and dismiss the permanent injunction on the company’s XRP sales to institutions.
For context, Judge Torres denied the parties’ initial attempt to obtain the indicative ruling last month. At the time, she noted a procedural flaw in the joint motion and ruled that the parties had failed to demonstrate “exceptional circumstances” warranting the requested relief.
This month, the parties launched another attempt to secure the indicative ruling, addressing the issues raised in the previous order. Nearly two weeks have passed since the filing, but the judge has yet to issue a decision.
Judge Torres’s Summary Judgment Remains Untouched
Notably, Morgan said the decision would only focus on the parties’ request to reduce the penalty and vacate the injunction. He suggested that the decision would not define the legal status of crypto assets in the United States, as Squire claimed.
According to him, the SEC and Ripple agreed not to challenge, modify, or vacate Judge Torres’ 2023 summary judgment decision. The lawyer also attached an excerpt from the joint motion corroborating his claims.
SEC and Ripple agree not to modify Judge Torres summary judgment decision
For context, in the summary judgment decision, the judge stated that XRP is not a security in itself. She also declared that Ripple’s XRP sales to institutional clients were investment contracts, but those conducted on digital exchanges were not.
The summary judgment decision has played a crucial role in determining the legal status of crypto. According to the ruling, cryptocurrencies are not securities, but can be sold as part of an investment contract.
In the meantime, the broader legal uncertainty around crypto’s status may soon be addressed. The U.S. Senate recently introduced legislation that would specify the criteria determining when a crypto asset should be classified as a commodity or security.
