24/7 Cryptocurrency News

XRP Lawyer Backs Judge Torres Deeming Ex-SEC Official’s Statement ‘Incorrect’

XRP lawyer challenges former SEC official John Reed Stark's interpretation of Judge Torres' ruling in the Ripple case, sparking debate over regulatory clarity in crypto markets.
Published by
XRP Lawyer Backs Judge Torres Deeming Ex-SEC Official’s Statement ‘Incorrect’

Highlights

  • XRP lawyer disputes ex-SEC official's claim on Judge Torres' ruling, emphasizing interpretation differences.
  • Ripple and Coinbase face implications as court rulings play key roles in the regulatory landscape.
  • The debate over the application of the Howey test to cryptocurrency transactions intensifies amid legal battles.

In the ongoing legal saga between Ripple and the U.S. Securities and Exchange Commission (SEC), a recent statement by ex-SEC official John Reed Stark regarding XRP secondary market sales sparked controversy. Notably, pro-XRP lawyer Bill Morgan swiftly countered Stark’s assertion, igniting further debate in the crypto community.

Meanwhile, as regulatory clarity remains a key concern for investors, the nuances of court rulings hold significant weight in shaping the future of cryptocurrencies.

Advertisement

XRP Lawyer Challenges Ex-SEC Official’s Comment

Amid the Ripple vs. SEC legal battle, pro-XRP lawyer Bill Morgan has disputed a recent statement made by ex-SEC official John Reed Stark. As reported by CoinGape Media earlier, the ex-SEC official claimed that Judge Torres’ ruling implied secondary sales of XRP couldn’t be considered investment contracts. However, the XRP lawyer Bill Morgan argues that Stark’s interpretation is “incorrect”.

Meanwhile, Morgan clarified in a social media post that Judge Torres did not make any conclusive findings regarding the nature of secondary market sales of XRP. Rather, the court explicitly stated that this issue wasn’t properly before it.

In addition, he has also shared a court document to support his claims. Notably, the court order emphasized that determining whether such XRP sales constitute investment contracts depends on the specific circumstances and economic reality of each transaction.

Source: Bill Morgan, X

Meanwhile, Morgan’s statement, in response to Stark’s assertion that Judge Torres’ logic in the Ripple case, has gained notable attention from the crypto market enthusiasts. For context, in an X post, John Reed Stark contended that Judge Torres’ ruling suggested secondary sales couldn’t be investment contracts because buyers might not know the seller’s identity.

Also Read: Ethereum Co-Founder Vitalik Buterin Criticizes Ongoing Meme Coin Frenzy

Advertisement

Crypto Market Seeks Regulatory Clarity From Ripple & Coinbase Case

The dispute over the interpretation of Judge Torres’ ruling holds significant implications for Ripple and Coinbase as they navigate the regulatory landscape. While the SEC seeks hefty penalties against Ripple, the court rulings play a crucial role in determining the legal status of cryptocurrencies like XRP and the operations of platforms like Coinbase.

Meanwhile, Judge Failla’s rejection of Judge Torres’ reasoning, as suggested by the ex-SEC official, underscores the complexity of applying the Howey test to cryptocurrency transactions. As the legal battle continues, both Ripple and Coinbase will rely on strategic legal arguments to defend their positions and address the SEC’s allegations of securities law violations.

On the other hand, the recent remarks from the XRP lawyer have also sparked discussions in the crypto market. Notably, the XRP price has added over 1.05% over the last 24 hours and traded at $0.6286 during writing.

Also Read: Prisma Finance Hacker Moves Funds to Tornado Cash

Advertisement

Share
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.

Published by
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.

Recent Posts

  • 24/7 Cryptocurrency News

Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation

Tether Holdings is preparing for one of its biggest funding rounds, with two global investors…

September 26, 2025
  • 24/7 Cryptocurrency News

Kraken Secures $500M at $15B Valuation, Eyes IPO in 2026

Kraken raised $500 million, increasing its valuation to $15 billion, setting the stage for a…

September 26, 2025
  • 24/7 Cryptocurrency News

Bybit Lists Ripple’s RLUSD Following BlackRock and VanEck Integration

Crypto exchange Bybit has announced its listing of Ripple's RLUSD amid the stablecoin's growing adoption.…

September 26, 2025
  • 24/7 Cryptocurrency News

SWIFT Plans Stablecoin and On-Chain Messaging Pilot on Linea, Challenging Ripple

The world's largest interbank messaging network SWIFT has selected Ethereum layer 2 platform Linea to…

September 26, 2025
  • Bitcoin News

Breaking: U.S. PCE Inflation Rises To 2.7% YoY, Bitcoin Bounces

The August U.S. PCE inflation data has dropped in line with expectations, although it suggests…

September 26, 2025
  • 24/7 Cryptocurrency News

Breaking: $10 Trillion Vanguard Plans to Offer Crypto ETFs to Brokerage Clients

Asset manager Vanguard, with $10 trillion in assets under management (AuM), is planning to offer…

September 26, 2025