Researcher Claims Judge Torres Didn’t Define XRP as a Non-Security in SEC v. Ripple Case

Dark Horse, a pseudonymous crypto researcher, stirs up controversies in the XRP community following his recent analysis of Judge Analisa Torres’ decision regarding XRP.

In a tweet yesterday, Dark Horse claimed that XRP is only a digital asset with no legal definition. The researcher noted that Judge Torres, the ruling judge in the SEC v. Ripple lawsuit, never categorized XRP as a security or commodity.

🤔🤔🤔 Need some X Legal help please to debate this..
➡️ I believe that Judge Torres has not determined XRP token as a security or commodity
➡️ I also believe that she did not define XRP as not a security either 🤔
➡️ Judge Torress stated that XRP can not be a Transaction.… pic.twitter.com/3DzKrG4BXD

— ĐΛRKHØRSΞ™ (@DarkhorseDNME4) March 7, 2024

How Judge Torres Was Clever With Her Words

Furthermore, he claimed that the judge was clever in not using specific terms to define XRP in her summary judgment. Instead, Dark Horse shared an excerpt from Judge Torres’ statement where she said:

“XRP, as a digital token, is not in and of itself a ‘contract, transaction, or scheme’ that embodies the Howey requirements of an investment contract.”

Reacting, Dark Horse said Judge Torres’ wordings show that XRP and other crypto assets are not securities by definition. However, he added that the judge was not specific in labeling XRP as a security, commodity, or currency.

“The judge never pressed that point; she merely side-stepped and said they aren’t in amongst themselves a security transaction, therefore not governed by the Howey Test,” Dark Horse remarked.

Dark Horse Faults Popular Claim About XRP

He emphasized that since the judge did not classify XRP as a security or commodity, enthusiasts of the asset are wrong to claim that “XRP is the only one with legal clarity.”

According to him, the correct statement should be “every crypto asset has legal clarity” based on her decision.

XRP Community Reacts

As expected, XRP community members reacted to the post, with some users describing Dark Horse’s analysis as a joke. In addition, other enthusiasts suggested that Dark Horse should sell his XRP assets and never return.

Just do us all a favor sell your shit and never come back !!!!!!! Ever ! Go hang around Money and the future verse

— SOG TX (@SonofGodTexas) March 7, 2024

Experts Scrutinize Judge Torres’ Decision

Notably, Judge Torres’ decision in the Ripple case has been in the limelight for several months. Recall that while Judge Torres declared Ripple’s past XRP sales to institutional investors as investment contracts, she held that programmatic sales and other distributions do not constitute securities.

Consequently, some experts described the mixed ruling as controversial. Specifically, Fox Business journalist Charles Gasparino said Judge Torres’ mixed ruling implies that XRP is simultaneously a security and a non-security.

He asserts that the controversial ruling makes it difficult for asset managers like BlackRock to introduce a spot ETF for XRP.


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