• Bill Morgan, a lawyer advocating for Ripple (XRP), highlights Judge Torres’ decision on XRP’s security status as influencing the FIT 21 bill.
  • The FIT 21 bill aligns with the court’s ruling, stating digital assets sold under contracts aren’t securities by default.

The ongoing Ripple (XRP) lawsuit against the SEC continues to spark discussions within the crypto community. A recent comment by pro-XRP lawyer Bill Morgan has shed light on the potential influence of Judge Torres’ ruling on the recently passed FIT 21 bill.

Judge Torres’ Ruling and the FIT 21 Bill

The FIT 21 bill has emerged as a potential framework for regulating digital assets in the US. This bipartisan bill, recently voted on by the House of Representatives, aims to establish clear regulations for cryptocurrencies.

Interestingly, Bill Morgan suggests that Judge Torres’ ruling on XRP’s status as a security may have influenced the bill’s provisions. He shared an excerpt from the bill on a social media platform, emphasizing the section that states: “A digital asset sold or transferred pursuant to an investment contract is not and does not become a security as a result of being sold or otherwise transferred pursuant to that investment contract.”

This specific provision aligns with Judge Torres’ summary judgment in the Ripple vs. SEC case. The court concluded that XRP, in itself, is not a security. However, the judge acknowledged that its sale or offering to certain institutions could be categorized as such. This distinction between the inherent nature of the asset and its sale has significantly impacted the conversation surrounding digital asset regulation.

Ripple Lawsuit and Community Support

The Ripple vs. SEC lawsuit, along with the unwavering support of the XRP community, has been instrumental in pushing for regulatory clarity in the crypto space. CryptoLaw, affiliated with the Deaton Law Firm, acknowledges the lawsuit’s role and the XRP community’s efforts in shaping the FIT 21 bill. Their report highlights how Judge Torres’ decision and the community’s relentless advocacy influenced the bill’s provisions. Notably, the section clarifying the treatment of digital assets sold under investment contracts reflects the arguments and conclusions presented in the Ripple case.

Looking Ahead: Impact on XRP

Bill Morgan has also addressed concerns regarding the FIT 21 bill’s impact on XRP. He clarifies that the court’s decision on XRP not being a security remains unchallenged by the SEC and won’t be affected by the new legislation. This emphasizes that the recently passed FIT 21 bill won’t alter existing court rulings on XRP’s legal status.

The Ripple vs. SEC lawsuit and the FIT 21 bill mark significant developments in the ongoing saga of digital asset regulation. With the legal battle progressing and the FIT 21 bill awaiting further deliberation, the future of XRP and the broader crypto landscape remains an intriguing topic to follow.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.