In a tweet on the 30th of May 2023, Bill Morgan, an Australian-based lawyer, expressed concern about the likelihood of Judge Analisa Torres not ruling on XRP security classification in the ongoing lawsuit between the U.S. SEC and Ripple, the San Francisco-based cross-border payment firm.
Going by Morgan in a series of tweets, the judge’s ruling on the parties’ Daubert motion is enough to indicate her focus on the much-awaited summary judgment decision.
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The lawyer quoted a portion of Judge Torres’ decision on the parties’ Daubert’s motion, which states that “the issue in the case is whether Defendants offered to sell or sold XRP as a security.”
Although Morgan hopes to see a decision focused on whether XRP is a security, he’s worried that she has already showcased her disinterest in including that important aspect in her ruling.
In a thread of tweets, Bill Morgan wrote:
“The judge was clear in the Daubert motion decision on the issue she needs to decide. This issue was the basis on which she decided to permit or disallow expert evidence not on XRP in secondary market trading. I hope she addresses the issue of whether XRP itself is a security but I am concerned she has indicated she will not.
“Look at it this way. If Ripple loses and you get to penalties and disgorgement by Ripple of profits on XRP sales, the Judge may consider if XRP is a security. I think that was the point Jeremy Hogan was making.”
The judge was clear in the Daubert motion decision on the issue she needs to decide. This issue was the basis on which she decided to permit or disallow expert evidence not on XRP in secondary market trading. I hope she addresses the issue of whether XRP itself is a security /1 https://t.co/98fX1HqPdz pic.twitter.com/O2KTztQwGM
— bill morgan (@Belisarius2020) May 29, 2023
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XRP Could Hardly Be a Security
The lawyer went further to assert that XRP could still hardly be a security if Ripple’s sales were not considered securities.
“…But if Ripple wins on the main issue the judge defined in the Daubert motion that Ripple sales of XRP are not investment contracts then she doesn’t need to decide if XRP is a security,” Bill Morgan noted.
In response to his assertion, a supposed XRP community member wrote, “She took that long to not address the elephant in the room? That would be disappointing, to say the least…”
Morgan replied, stating that he is only concerned about the possibility of her not ruling on the XRP security status. He said it won’t be necessary for her to decide on the issue if Ripple wins the lawsuit:
“I am not saying she won’t. I hope she does but I have some concerns she can avoid the issue. One way of course she cannot address the issue is if Ripple wins big.”
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