Ripple Legal Theories Were Overlooked in the Recent Ruling, Ripple CTO

On July 13, Judge Torres ruled that XRP is not a security, as the United States SEC alleged in its 2020 lawsuit against Ripple, XRP, and its executives. After the ruling, the XRP community jubilated while the coin skyrocketed above 50% of its price in a few hours.

A huge win today - as a matter of law - XRP is not a security. Also a matter of law - sales on exchanges are not securities. Sales by executives are not securities. Other XRP distributions - to developers, to charities, to employees are not securities.

- Stuart Alderoty (@s_alderoty) July 13, 2023

But several legal representatives have shared opinions that the Judge seemingly overlooked the legal theories Ripple and its supporters asserted.In a tweet on July 16, the General Council at Delphi Labs disclosed these findings, and Ripple CTO Stuart supported him.

Ripple Won Despite the Judge's Disagreement with Legal Theories

According to Gabriel Shapiro's tweets on July 16, the crypto firm won the fight against SEC even though Judge Torres overlooked the legal theories it asserted.Shapiro further stated that Ripple's amici deserve the credit for making the judge consider and side with Ripple.

Ripple won *despite* every legal theory asserted by Ripple and its amicii...

The amicii, especially with @NYcryptolawyer s help, deserve tons of credit for getting the judge to think deeply and side with Ripple, but the judge did not agree with their legal theories... she ended... pic.twitter.com/LRiSvazFb6

- _gabrielShapir0 (@lex_node) July 16, 2023

But even then, Judge Torres disagreed with their arguments about a predicate contract" but maintained what others believed: tokens are not intrinsically securities."In response to Shapiro's assertions, another legal official, Rodrigo working at a research-driven technology investment firm, Paradigm, disagreed.

Rodrigo said; agree that our amicus does not line up perfectly w/ Torres' opinion, but it's not fair to say the opinion came out the way it did despite" our amicus.

Our core point is that Howey focuses on contracts, transactions, or schemes, not assets and that there is no precedent for holding that an asset sold in an IC is a security. The opinion adopts this."

Many other users also joined the conversation, with some stating that the judge rejected the essential ingredient test. Still, her ruling relied on the existence of a contract but in different words.

David Schwartz Weighs in Agreeing with Shapiro

Following the many responses on how Judge Torress ruled the case, Ripple's CTO agreed with Shapiro.Schwartz said, I agree the ruling doesn't focus on the legal theories Ripple put the most effort into, but it makes sense that you need to try the hardest for the things least likely to work.

The CTO also attached a part of Ripple's motion for the summary judgment, stating that there was no exchange of money for a significant portion of the XRP distributed by Ripple; and where money was exchanged, it was not an investment of money" under Howey.

Another response came from the founder of Coin Fund, Jake Brukhman, who stated that the judge applied a straight logical test of common enterprise and didn't base her ruling on theories or ingredients.

Meanwhile, it is worth noting that the bullish momentum on the XRP price has seemingly died down. At the time of writing today, July 17, the coin trades at $0.738, representing a decline of 4.20% in 24 hours.

However, the coin still holds most of its gains, as seen by the 56% weekly gain value. Also, it occupies the 4th position after Tether USDT on the Coinmarketcap ranking.

The post Ripple Legal Theories Were Overlooked in the Recent Ruling, Ripple CTO appeared first on The Tech Report.