- Crypto lawyer Bill Morgan recently shared his take on the recent summary judgment motion in SEC vs Ripple.
- Morgan stated that the summary judgment would hold up even if the SEC appealed it in the second circuit court.
- The lawyer believes that even a successful appeal by the SEC wouldn’t change the inherent non-security status of XRP.
Bill Morgan, a lawyer popular among crypto circles online, believes that the recent summary judgment motion in the Securities and Exchange Commission’s lawsuit against Ripple will benefit XRP holders as Ripple navigates the rest of this legal battle. Morgan is confident that the judgment will hold up even if the SEC chooses to appeal.
Bill Morgan took to Twitter earlier today to break down the potential moves that may follow the recent summary judgment by New York federal judge Analisa Torres. The ruling came more than two years after Ripple was sued by the securities regulator for illegally raising $1.3 billion through unregistered securities offering.
Judge Torres ruled that the retail or programmatic sales of XRP could not be categorized as an investment contract and therefore did not constitute a securities offering. She added that XRP, as a digital token, is not itself a contract transaction or scheme that satisfies the Howey Test’s requirements of an investment contract.
According to Bill Morgan, if the SEC appeals the summary judgment in the second circuit court, the clarity provided by Federal Judge Torres would protect XRP investors and holders, even if the SEC proves that programmatic sales were investment contracts. The judge followed precedents from eight previous cases, including one involving the social messaging app Telegram.
“The Judge clearly views XRP as a commodity or ordinary asset and certainly not inherently an investment contract. This is reinforced by the judge then immediately continuing, in rejecting a Ripple argument about character in commerce,” the crypto lawyer told his followers on Twitter.
Bill Morgan stated that he saw no error in the summary judgment, which put to rest the SEC’s historical and controversial claim about XRP’s security status.
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