SEC vs. Ripple: Top Lawyer Says Judge Torres Won’t Rule on Whether XRP is a Security

Attorney Morgan is concerned that Judge Torres has already indicated that she won’t rule on whether XRP itself is a security.

In a tweet today, Australian-based lawyer Bill Morgan expressed concern over the fact that Judge Analisa Torres will not address whether XRP is a security in the lawsuit between the SEC and Ripple.

According to attorney Morgan, Judge Torres’ ruling on the parties’ Daubert motion showed the exact issue she will likely focus on in the upcoming summary judgment decision.

He highlighted a portion of Judge Torres’ decision on the parties’ Daubert’s motion, which stated that: “the issue in the case is whether Defendants [Ripple and two of its execs] offered to sell or sold XRP as a security.”

While the lawyer hopes that Judge Torres rules on whether XRP itself is a security, he expressed concern that she has already indicated that she will not issue a ruling on the matter.

but I am concerned she has indicated she will not /2

— bill morgan (@Belisarius2020) May 29, 2023

Judge Torres Won’t Rule on XRP Secondary Market Sales If Ripple Wins

He added that if Ripple loses its case against the Securities and Exchange Commission, Judge Torres may have to decide whether XRP is a security. However, if the blockchain company wins the legal tussle, there will not be any need for a ruling on whether XRP itself is a security.

“XRP could hardly be a security itself if Ripple sales of XRP were not found to be sales of securities,” Morgan asserted.

The pro-XRP lawyer made this known while reacting to an earlier tweet by attorney Jeremy Hogan, a partner at Hogan & Hogan.

Earlier today, Hogan asserted that Judge Torres might likely not address the XRP secondary market transactions issue in her upcoming summary judgment decision. Per Hogan, Judge Torres will not address the issue because the SEC did not explicitly raise it in its complaint.

3 Factors That Could Prompt a Decision on XRP Secondary Market Sales

Attorney Hogan shared three points that could prompt Judge Torres to address secondary market sales of XRP coin.

According to attorney Hogan, Ripple could seek SEC’s consent to include in its proposed final judgment that the summary judgment does not cover XRP secondary market sales.

Secondly, Hogan speculates that Judge Torres may address the concerns raised by multiple amici curiae (friends of the courts), including the brief filed by Deaton on behalf of over 75K XRP holders, regarding the secondary market transaction of XRP.

If Ripple loses the lawsuit, Hogan said Judge Torres could be compelled to address the issue at the penalty stage when a disgorgement order is drafted.

And Finally, the Judge could be forced (if Ripple loses) to address Secondary Sales at the “penalties” stage when a disgorgement Order would have to be drafted.

Why?

Because the Judge must review the distribution of “disgorged” profits for fairness (cont.)… pic.twitter.com/RXL1QDQa4z

— Jeremy Hogan (@attorneyjeremy1) May 29, 2023