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<ul> 
 <li>Legal expert clarifies XRP ruling: Not a security, but part of securities offerings.</li> 
 <li>Judge Torres found insufficient evidence for some XRP sales as securities.</li> 
 <li>Legislation needed to address regulatory gaps and classify crypto assets clearly.</li> 
</ul> 
<p>Mike Selig, a prominent crypto and financial regulation lawyer, has taken to Twitter to provide clarification on Judge Analisa Torres’ ruling in the <a href="https://www.sec.gov/" target="_blank" rel="noopener noreferrer nofollow">SEC</a> v. Ripple case. Selig’s comments come as he believes many commentators have misunderstood the court’s decision regarding XRP’s security classification.</p> 
<p>In a Twitter thread, Selig emphasizes that Judge Torres did not rule that XRP is a security when sold to institutional clients and not a security when sold to retail investors. Instead, the judge says <a href="https://cryptonewsland.com/ripple-wins-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">XRP itself is not a security</a>. However, she says it can be sold as part of a security offering.</p> 
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   <p lang="en" dir="ltr">Continue to hear commentators saying Judge Torres held that XRP is a security when sold to institutions and not a security when sold to retail. This is incorrect. Judge Torres held that XRP itself is not a security, but it can be sold as part of a security. /1</p>— Mike Selig (@MikeSeligEsq) <a href="https://twitter.com/MikeSeligEsq/status/1685668270253166592?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 30, 2023</a> 
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<p>The lawyer emphasizes that XRP, essentially a computer code, could involve itself in investment schemes that implicate securities laws. He says this is much like gold or whiskey in certain investment contexts.</p> 
<p>Specifically Selig states that the court has the role of determining whether an investment involves putting money into a common enterprise with an expectation of profits based on the efforts of others. The judge, according to Selig, found insufficient evidence to classify certain XRP sales as securities under the Howey test, a legal assessment used to determine investment contracts.</p> 
<p>In addition, Selig defends Judge Torres’ decision and notes that no legal precedent supports the view that a commodity can embody a security, implying that crypto assets, including XRP, cannot be deemed investment contracts.</p> 
<p>However, the legal expert points out that the ruling exposes a significant regulatory gap regarding crypto assets. He argues that legislation is necessary to address this gap and grant regulatory agencies like the SEC or CFTC the authority to make new rules for crypto assets.</p> 
<p>In response to Selig’s post, John Deaton, founder of Crypto-Law.US, shows amazement at how several experts continue to misstate the judge’s decision. Deaton raised concerns about whether these misinterpretations are deliberate and aimed at promoting a false narrative.</p> 
<p>Meanwhile, Deaton draws light to an old tweet from two years ago that holds merit to this day. Bitcoin, Ether, and XRP are at the forefront of the crypto asset race, would you agree? The <a href="https://cryptonewsland.com/deaton-addresses-xrp-and-crypto-community-what-do-you-see/" target="_blank" rel="noopener noreferrer nofollow">responses to his calling</a> are mostly positive.</p> 
<h4 class="wp-block-heading" id="h-read-also">Read Also</h4> 
<ul class="wp-block-yoast-seo-related-links"> 
 <li><a href="https://cryptonewsland.com/judge-reject-sec-motion-to-revoke-amici-status-and-bar-john-deaton/" rel="noopener noreferrer nofollow">Judge Reject SEC Motion to Revoke Amici Status and Bar John Deaton</a></li> 
 <li><a href="https://cryptonewsland.com/secs-appeal-against-judge-torres/" rel="noopener noreferrer nofollow">SEC’s Appeal Against Judge Torres Ruling on XRP Likely to Face Uphill Battle</a></li> 
 <li><a href="https://cryptonewsland.com/xrp-poised-for-greatness-judge-torres-ruling-just-the-beginning/" rel="noopener noreferrer nofollow">XRP Poised for Greatness: Judge Torres’ Ruling Just the Beginning</a></li> 
 <li><a href="https://cryptonewsland.com/coinbase-relists-xrp-after-judge-torres-rules-its-not-a-security/" rel="noopener noreferrer nofollow">Coinbase Relists XRP After Judge Torres Rules It’s Not a Security</a></li> 
 <li><a href="https://cryptonewsland.com/ripples-legal-chief-says-lawsuit-win-is-in-the-bag/" rel="noopener noreferrer nofollow">Ripple’s Legal Chief Says Lawsuit Win Is in the Bag</a></li> 
</ul> 
<p>The post <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com/top-legal-expert-clarifies-judge-torres-ruling-on-xrp-security-status/">Top Legal Expert Clarifies Judge Torres’ Ruling on XRP Security Status</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Top Legal Expert Clarifies Judge Torres’ Ruling on XRP Security Status

Crypto News Land

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