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XRP retail holders made biggest winners from Torres’ decision, technology policy expert says



  • Leading international expert on technology policy has ranked retail XRP holders as the leading beneficiaries of Judge Torres’ decision.
  • Rosalyn Clayton calls the holders “victims of regulatory overreach,” lauding the judge for “schooling” the SEC.
  • The ruling absolved Ripple CEO Brad Garlinghouse and board chair Chris Larsen for their XRP sales.

Ripple (XRP) lawyer John E. Deaton has remarked on the opinion of a technology policy expert, Rosalyn Clayton, who pioneered the report on the US Securities and Exchange Commission’s (SEC) unconstitutional augmentation of the Howey Test.

XRP holders marked biggest beneficiaries

According to Rosalyn Clayton in the DC Journal, XRP retail holders became the biggest winners from Judge Analisa Torres’ decision on July 13, as the technology policy expert explores how the law won against the SEC. According to Clayton, a decisive ruling in favor of the financial regulator would have been indelibly detrimental not just to XRP holders but to every other crypto holder, regardless of the ecosystem.

As FXStreet reported, Judge Torres broke the XRP vs. SEC case after three long years, determining that selling the Ripple token to institutional investors made the asset a security, but a sale to retail traders did not. This was an accurate interpretation of the Howey Test. Based on this formula, an asset is considered a security when the host (offerer, for lack of a better word) looks at it as an investment of money with a clear intention to derive profits off the efforts of others. This is the case for offering XRP to institutional investors.

An excerpt from the ruling read:

Therefore, having considered the economic reality and totality of circumstances surrounding the Institutional Sales, the court concludes that Ripple’s Institutional Sales of XRP constituted the unregistered offer and sale of investment contracts in violation of Section 5 of the Securities Act. 

Dr. Clayton holds that in her determination, Judge Torres “schooled the SEC” in the very same law that birthed the agency, leaning into the 1946 Howey Supreme Court decision that demarcates the regulator’s mandate. She lauds the federal judge for concentrating her determination on the federal agency’s allegations against the payments company and its two senior executives, Brad Garlinghouse and Chris Larsen, CEO and board chair, respectively.

Notably, Clayton acknowledges that XRP holders were the biggest beneficiaries, with full cognizance that the ruling absolved both Garlinghouse and Larsen from possible prosecution for alleged crimes dating back ten years. Like Binance and its CEO Changpeng Zhao, Garlinghouse was also tied to the alleged crime of offering unregistered securities.

The ruling will be crucial in steadying the “SEC’s free hand to use the courts to terrorize others…

Ripple price slides north

Meanwhile, Ripple price continues to consolidate north along an ascending trendline while it combats selling pressure from the 50-day Exponential Moving Average at $0.72. The outlook remains bullish for as long as XRP remains above the 100-day EMA at $0.69. A decisive break below the $0.66 support level could pave the way for more losses, potentially writing offa the ground covered on July 13.

XRP/USDT 4-hour chart

On the other hand, buying momentum could resume, possibly as sidelined investors or those who missed the 70% rally find an entry point. The ensuing buying pressure could keep Ripple price above the uptrend line, ultimately leading to a reclamation of the range high, or in a highly bullish case, a score of the $1.00 target.


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