SEC’s Language Shift Sparks Debate in Ripple vs. SEC Legal Battle

• Ripple is engaged in a legal battle with the SEC over the nature of its XRP token.
• Ripple CTO David Schwartz has challenged the SEC’s linguistic shift in terms of security classification, while attorney Bill Morgan questioned Judge Torres’s ruling on XRP sales.
• The debate has focused on whether or not transactions and investment contracts can be fused together.

SEC vs Ripple Legal Clash

The US Securities and Exchange Commission (SEC) is engaged in a legal battle with blockchain giant Ripple over the nature of its XRP token. Attorney Bill Morgan had previously noted a linguistic shift in the SEC’s verbiage, which sparked intense debates among experts on whether or not transactions and investment contracts can be fused together.

Ripple CTO Challenges SEC’s Language Shift

Ripple’s Chief Technical Officer David Schwartz has vehemently challenged what he referred to as a „subtle but significant change“ in the SEC’s language. He drew an analogy between XRP tokens and Howey’s cultivation of orange groves, emphasizing that labeling something as a security does not inherently classify it as such.

Morgan Questions Judge Torres‘ Ruling

Attorney Morgan also delved into Judge Torres‘ ruling, wherein she amalgamated sales to on-demand liquidity (ODL) customers with other transactions involving institutions. He questioned why this specific category was lumped together, wondering if perhaps there are other factors at play here that could have been overlooked by the court.

Fusion of Transactions & Investment Contracts

The ongoing legal battle between Ripple and the SEC has brought to light discussions surrounding the intricate details of this case, particularly regarding how transactions and investment contracts should be handled by regulators when it comes to crypto assets.


The subtle but significant changes observed by both Schwartz and Morgan highlight just how complex these matters can be when it comes to deciphering classifications like securities or commodities for digital assets such as XRP tokens. As this case progresses further, more insights will surely become available within the crypto industry that will help inform future regulations for all types of digital assets moving forward.