Legal experts say future rulings in the Ripple case will not redefine US cryptographic status

Attorney Bill Morgan has made it clear that future rulings in the Ripple case will not redefine the legal status of US crypto assets.

Morgan made his claim in response to a bold claim from market commentator John Squire. In today’s X post, Squire suggested that US District Judge Annalisa Torres is on the verge of making her final decision in the Ripple case.

Future rulings could set groundbreaking precedents that change the legal status of US crypto assets, according to Squire

This suggests that Judge Torres’ future decisions can play a major role in determining the legal status of cryptocurrencies, particularly in determining whether they are classified as goods or securities.

Misleading claims

However, lawyer Morgan retorted the claim as “wrong.”

Legal experts have made it clear that future decisions will focus narrowly on the parties’ joint allegations for directive rulings. In that decision, Morgan argued that the judge would control whether there were exceptional circumstances to reduce Ripple’s penalty to $50 million and would dismiss the company’s permanent injunction to XRP sales.

For context, Judge Torres denied the parties’ initial attempts to obtain an instructive sentence last month. At the time, she noticed a procedural flaw in the joint move and determined that the parties were unable to demonstrate a “exceptional situation” that guaranteed the relief they requested.

This month, party Release Another attempt Address issues raised in the previous order to ensure directive judgments. It has been almost two weeks since its submission, but the judge has not yet made a decision.

Judge Torres’ summary judgment remains untouched

In particular, Morgan said the decision would focus solely on the parties’ demands to reduce penalties and vacate the injunction. He suggested that the decision did not define the legal status of US crypto assets, as Squire argued.

He said the SEC and Ripple agreed not to challenge, amend or leave Judge Torres’ summary judgment decision. The lawyer also attached excerpts from the joint move supporting his claims.

The SEC and RIPPLE agree not to change Judge Torres’ summary judgment decision

For context, in the summary judgment decision, the judge said that XRP is not security in itself. She also declared that the sale of XRP to Ripple’s institutional clients was an investment agreement, but what was carried out in digital exchange was not an investment agreement.

Summary judgment decisions have played an important role in determining the legal status of a code. Cryptocurrencies are not securities, but can be sold as part of an investment agreement.

In the meantime, broader legal uncertainty regarding the Crypto situation could soon be addressed. The US Senate recently introduced legislation specifying criteria for determining whether crypto assets should be classified as commodity or security.