Pro-XRP Lawyer Bill Morgan Sees Binance Ruling as Boost for XRP Non-Security Status

Legal expert Bill Morgan, known for his pro-XRP stance, has suggested that the recent ruling by District Judge Amy Berman Jackson in the Binance case

Prominent legal expert Bill Morgan, who has been a vocal supporter of XRP throughout the SEC lawsuit, has highlighted a key aspect of the recent ruling by District Judge Amy Berman Jackson in the Binance case.

According to Morgan, Judge Jackson's decision to cite Judge Analisa Torres' ruling in the Ripple case, when dismissing parts of the SEC's case against Binance, further strengthens the argument that XRP is not a security.

In her Friday ruling, Judge Jackson dismissed the SEC's claim that secondary market sales of Binance's BNB token constitute securities. However, the Judge noted that her decision is limited to the facts of the case at hand.

The ruling placed emphasis on the need to distinguish between digital coins themselves and the offers to sell them, a distinction that has been at the heart of the debate over whether certain crypto assets qualify as investment contracts.

"Several district court cases involving SEC enforcement actions on cryptocurrencies have made this distinction where courts differentiated between the alleged investment contracts and the tokens," the ruling stated.

Among the references cited by Judge Jackson was Judge Torres' statement in the Ripple case, which noted that the XRP token itself is not an investment contract.

"Each of these differentiations is consistent with the Supreme Court's interpretation of 'investment contract' within the definition of a 'security,'" Judge Jackson noted in her ruling.

In a commentary on the coverage of Judge Jackson's ruling, Morgan took aim at CoinDesk for failing to acknowledge this crucial point.

"CoinDesk, failing to get the point of the coverage of Judge Jackson's Binance ruling. They report on the Judge citing Judge Torres' observation, but fail to mention that this is in the context of the Judge finding these observations clarifying and persuasive in differentiating a crypto asset itself from the alleged investment contracts. To stress its significance, this decision reinforces the reasoning that XRP itself is not a security, as Judge Torres ruled on July 13, 2023."

In another tweet, Morgan highlighted the significance of Judge Jackson's ruling by noting its agreement with Judge Torres' interpretation of the third prong of the Howey test, which concerns the expectation of profits based on others’ efforts.

"Also of note in Judge Jackson's Binance ruling is her agreement with Judge Torres' interpretation of the third prong of Howey (expectation of profits based on others' efforts) as it concerns institutional purchasers. This reasoning is to be preferred over Judge Rakoff's approach in the Terraform case, which did not distinguish between institutional and programmatic buyers of tokens."

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