A recent column by Charles Gasparino in the New York Post has sparked a heated debate within the cryptocurrency community, particularly among supporters of the digital token XRP. In his piece, Gasparino questioned the rationale behind Judge Analisa Torres’ recent decision concerning XRP and Ripple Labs, the company that utilizes the token.
XRP Under Scrutiny
The issue centers around the ruling of the lawsuit filed by the Securities and Exchange Commission (SEC) against Ripple. The SEC claims that XRP is a security, and thus falls under its regulatory jurisdiction. Ripple, on the other hand, argues that XRP is a currency, not a security, and should be treated as such.
The case was handed to Judge Torres who found, contrary to the SEC’s claims, that XRP does not fall under the classification of a security. For many, this has presented a new paradigm in which cryptocurrency regulation is not solely within the purview of the SEC.
A Voice from the Crypto Trenches
Attorney John Deaton, the founder of CryptolawUS, took to Twitter to voice his support for Judge Torres’ decision and discuss his own legal battles with the SEC regarding its handling of cryptocurrencies, particularly XRP. Deaton criticized the tribalism and echo chamber politics surrounding the case and called out the SEC for its seemingly inconsistent treatment of different cryptocurrencies.
According to Deaton, the SEC had been inconsistent in its approach to regulating cryptocurrencies, pointing out that the commission had previously given Ethereum, another popular cryptocurrency, a regulatory free pass, whilst heavily scrutinizing XRP.
Deaton applauded Judge Torres’ ruling, stating that she made the correct decision, despite criticisms claiming the decision contradicts the policy considerations behind the 1934 Securities Act. He lauds the judge’s track record, asserting that the SEC will need “more than luck” to overturn her decision on appeal.
“When I sued SEC over its grossly over broad claims regarding #XRP, #Bitcoin Maxis called me the ShitCoin Attorney. It didn’t matter that my investment in #BTC was TEN TIMES larger than my investment in #XRP. It didn’t matter that I likely owned more #BTC than 90% of the Maxi’s.” John Deaton
Also Read – Ripple News: What XRP Holders Need to Know About Potential SEC Appeal
A Call to Defend the Judiciary
Meanwhile, James A. Murphy, a lawyer and founder of Metalawman, responded to Gasparino’s column on Twitter, asserting that the criticisms leveled against Judge Torres were both ill-informed and misleading. He emphasized the distinction between stocks and cryptocurrency tokens, a nuance he believes Gasparino missed, and backed Judge Torres’ ruling.
“It is the responsibility of lawyers and the American Bar Association to respond forcefully when defamations are launched against the judiciary.” James A Murphy
