A recent statement by Bill Morgan, a lawyer supporting XRP, has sparked more debate about the ongoing lawsuit between Ripple and the U.S. Securities and Exchange Commission (SEC). The lawsuit has taken another twist with the SEC opposing Ripple's request to seal and redact certain documents related to remedies.

Bill Morgan’s latest remarks focus on Judge Torres’ ruling concerning XRP’s status as a security.

Judge Torres’ Decision and Its Effect on FIT 21

The FIT 21 bill, a proposed law aiming to bring regulatory clarity to digital assets, is gaining attention within the crypto community. Recently, the U.S. House of Representatives voted on this significant bipartisan bill, a step towards a well-defined regulatory landscape for digital currencies.

Bill Morgan emphasized Judge Torres’ influence on this bill, particularly her decision that XRP is not inherently a security. He shared an image on the X platform, pointing out that, "The Torres influence on FIT21. XRP is not itself a security." The image highlighted a key 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."

This section aligns directly with Judge Torres’ summary judgment in the Ripple vs. SEC case. She determined that XRP itself is not a security, though its sale to institutions could be classified as such. This distinction has been crucial in shaping discussions on digital asset regulation.

Ripple Lawsuit: Legal Strategy and Community Efforts

The Ripple community, including legal experts and advocates, has played a key role in pushing for clear regulations in the crypto space. CryptoLaw, founded by Deaton Law Firm, credited the Ripple vs. SEC case and the persistent efforts of the XRP community for influencing the creation of the FIT 21 bill.

A recent report from CryptoLaw noted that Judge Torres’ decision and the advocacy for clarity by the XRP community were essential in drafting the bill’s provisions. Specifically, the section dealing with digital assets sold through an investment contract reflects the legal arguments and outcomes from the Ripple case.

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 law.

His comments were in response to a claim that under FIT 21, XRP would not be considered decentralized. Morgan’s insights highlight that the bill, recently passed by the US House, will not change the court’s existing rulings on XRP’s legal status.

In conclusion, the Ripple lawsuit and Judge Torres’ ruling have significantly influenced the FIT 21 bill, which seeks to provide clear regulatory guidelines for digital assets. The ongoing efforts of the XRP community and legal experts continue to shape the future of crypto regulation.