Contrary to widespread perception, renowned journalist Charles Gasparino asserts that Ripple has, in fact, lost its court battle against the U.S. Securities and Exchange Commission (SEC).
Despite a recent judgment declaring that XRP is not a security, Gasparino criticizes the ruling as “idiotic,” challenging the prevailing narrative of Ripple’s legal victory.
“Retail XRP holders ‘won’ for now because Judge Torres issued a truly idiotic, split the baby, ruling that’s the laugh of the southern district,” he said.
Unpacking the legal verdict
The case involving Ripple and the SEC culminated with the court finding that the Ripple-associated digital asset is not a security.
This pivotal decision came after the SEC’s failed effort to appeal and the dismissal of securities law violation charges against Ripple executives Brad Garlinghouse and Chris Larsen.
However, Gasparino’s analysis casts doubt on the outcome, labeling the ruling as nonsensical and ridiculing its reception in legal circles.
His perspective points to a potential gap in the application of traditional securities law to emerging digital currencies.
The journalist’s take was met with a wave of indignation within the XRP community. Crypto lawyer Bill Morgan argued that that the lawyer community largely views the ruling favorably. He stressed its legal soundness in distinguishing XRP from a security.
CryptoLaw also defended the verdict, arguing that most XRP transactions do not meet the criteria for being classified as securities.
Many members of the XRP community launched ad hominem attacks at Gasparino.