Ripple Lawsuit: XRP Lawyer Highlights Judge Torres 'Influence' On FIT 21 Bill

Highlights

Bill Morgan highlights Judge Torres' ruling that XRP is not inherently a security.
The FIT 21 bill aligns with Torres' decision, reinforcing XRP's non-security status.
The bill's provision states digital assets sold under contracts aren't securities by default.

A recent remark from the pro-XRP lawyer, Bill Morgan has fueled discussions over the ongoing legal between Ripple and the U.S. Securities and Exchange Commission (SEC). Meanwhile, the recent comment from Bill Morgan comes in regard to Judge Torres’s ruling regarding the XRP’s security status.

Notably, the Ripple lawsuit took a new turn recently as the SEC filed its reply opposing Ripple’s claim to seal and redact evidence to remedies-related briefs and documents.

Judge Torres’ Ruling and Its Impact on FIT 21

The FIT 21 bill has gained traction in the crypto community as a potential framework to provide regulatory clarity for digital assets. The U.S. House of Representatives recently voted on this landmark bipartisan crypto bill, marking a significant step towards establishing a clear regulatory environment for digital assets.

However, amid this, pro-XRP lawyer Bill Morgan highlighted Judge Torres’ influence on the bill, particularly her ruling that XRP is not inherently a security. The XRP lawyer shared an image on the X platform, stating, “The Torres influence on FIT21. XRP is not itself a security.”

The image outlined a crucial section of the bill: “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.”

Meanwhile, this section directly aligns with Judge Torres’ summary judgment in the Ripple vs. SEC lawsuit. She concluded that XRP itself is not a security, though its sale or offer to institutions could be classified as such. This distinction has been pivotal in shaping the conversation around digital asset regulation.

Also Read: The Potential of Mollars in a Post-Ethereum ETF Market

Ripple Lawsuit: Legal Strategy and Community Support

The Ripple community, including legal experts and advocates, has been instrumental in pushing for the crypto regulation and clarity over it. CryptoLaw, founded by Deaton Law Firm, credited the Ripple vs. SEC lawsuit and the relentless efforts of the XRP community in influencing the creation of the FIT 21 bill.

For context, a recent report from CryptoLaw highlighted that Judge Torres’ decision and the persistent advocacy for clarity from the XRP community were crucial in drafting the bill’s provisions. Specifically, the section clarifying the treatment of digital assets sold pursuant to an investment contract reflects the legal arguments and conclusions from the Ripple case.

Meanwhile, in another post, the XRP lawyer addressed concerns about the FIT 21 bill, emphasizing its non-retrospective nature. Morgan clarified that the court’s decision, which found XRP is not a security, remains unchallenged by the SEC and will not be affected by the new legislation.

Notably, his comments came in response to a post stating that under FIT 21, XRP would not be considered decentralized. Morgan’s insights underscore that the bill, recently passed by the US House, will not alter the court’s existing rulings regarding XRP’s legal status.

Also Read: BlackRock to Overtake Grayscale Amid Eight Days of Bitcoin ETF Inflows

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.