XRP News Today: Ripple Case Ruling Won't Redefine Crypto Legal Status

Attorney Bill Morgan has clarified that the upcoming ruling in the Ripple case will not redefine the legal status of crypto assets in the U.S. This clarification comes in response to a claim made by market commentator John Squire, who suggested that U.S. District Judge Analisa Torres is on the verge of delivering her final decision in the Ripple lawsuit. Squire's claim implied that the upcoming ruling could set a landmark precedent that would alter the legal status of crypto assets in the U.S.

Morgan refuted this claim, stating that it is incorrect. He explained that the upcoming decision will narrowly focus on the parties’ joint motion for an indicative ruling. This decision will determine 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. Judge Torres had previously denied the parties’ initial attempt to obtain the indicative ruling, citing a procedural flaw and noting that the parties had failed to demonstrate “exceptional circumstances” warranting the requested relief.

Morgan emphasized that the decision will only address the parties’ request to reduce the penalty and vacate the injunction. It will not define the legal status of crypto assets in the United States, as Squire claimed. The SEC and Ripple have agreed not to challenge, modify, or vacate Judge Torres’ 2023 summary judgment decision. In that decision, the judge stated that XRP is not a security in itself, but Ripple’s XRP sales to institutional clients were investment contracts, while those conducted on digital exchanges were not.

The summary judgment decision has been pivotal 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. This ruling has significant implications for the broader legal uncertainty around crypto’s status. Legislation recently introduced in the U.S. Senate aims to specify the criteria determining when a crypto asset should be classified as a commodity or security, which may soon address this broader legal uncertainty.