Federal Judge Handling SEC Vs Ripple Case Might Disappoint Cryptocurrency Industry

While Ripple CEO Brad Garlinghouse predicted that the verdict on the cryptocurrency solutions provider's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) could be out in weeks' time and not in months, a top lawyer has noted that U.S. Federal Judge Analiza Torres might disappoint the border cryptocurrency industry since she may not rule on the issue of whether XRP token is a security.

"The problem is that it is likely the judge will not even address the issue — since it's not explicitly raised by the plaintiff," Attorney Jeremy Hogan of Hogan & Hogan said in a tweet.

"And although you could argue that it's thereafter addressed by omission, would that be enough for the exchanges? We Don't Know," he added.

The lawyer, who has become popular for his expertise in the cryptocurrency space, further noted that "although the SEC's lawsuit contains language suggesting that XRP itself IS the security (like a share of stock), the SEC's requests of the Court in the lawsuit does NOT request anything that would confer this status on the asset."

Hogan also discussed the importance of the judge's rule on the "secondary market sales" of XRP in the ongoing Ripple case, noting that it is "important because we are only confident XRP will be relisted on exchanges if the issue of whether XRP is inherently a security is addressed."

The lawyer's concern was echoed by Australian-based lawyer Bill Morgan who used Torres' ruling on the parties' Daubert motion as a reference to his argument, saying that it featured the same issue the federal judge will likely focus on in her summary judgment decision.

Morgan then highlighted the portion of her verdict that said "the issue in the case is whether Defendants [Ripple and two of its execs] offered to sell or sold XRP as a security."

"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," Morgan said in a tweet, adding that he was "concerned she has indicated she will not" in a follow-up tweet.

Although Morgan, like Hogan, is hopeful the judge rules on whether XRP itself is a security, he shared his concern that she has already suggested she will not address the matter.

The lawyers' opinion came shortly after Garlinghouse shared his prediction on the court's ruling timeline during the fireside chat at the Redefine Tomorrow 2023 summit.

"In terms of where things stand today, I'll try not to get too much into the legal wigs. You're right that I feel very confident that we'll see a decision from the court this year. In fact, I'll guess in weeks, not months," the Ripple CEO said.