Contrary to widespread perception, renowned journalist Charles Gasparino claims that Ripple has, in fact, lost its court battle against the United States Securities and Exchange Commission (SEC).
Despite a recent ruling 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 ruling, splitting the baby, ruling that that is the laugh of the southern district,” he said.
Breaking down the legal verdict
The case involving Ripple and the SEC culminated in the court ruling that the digital asset associated with Ripple is not a security.
This pivotal decision came after the SEC’s failed attempt to appeal and dismissal of securities law violation charges against Ripple executives Brad Garlinghouse and Chris Larsen.
However, Gasparino’s analysis casts doubt on the result, calling the ruling absurd 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.
In the face of violent reaction
The journalist’s opinion was met with a wave of indignation within the XRP community. Crypto lawyer Bill Morgan argued that the ruling is largely viewed favorably by the legal community. He highlighted its legal soundness in distinguishing XRP from a security.
CryptoLaw also defended the verdict, arguing that the majority of XRP transactions do not meet the criteria to be classified as securities.
Many members of the XRP community launched ad hominem attacks against Gasparino.
