Ripple vs SEC Update: Does a Fresh Chapter Unfold in the Ongoing XRP Security Controversy?

An anonymous crypto researcher, known as Dark Horse, has sparked a discussion about the legal status of XRP in a recent post. Dark Horse argues that Judge Torres has not definitively classified XRP as a security or commodity. This challenges the widely held belief within the crypto community that XRP has legal clarity. Dark Horse’s argument is based on Judge Torres’s statements, where she did not explicitly label XRP as anything other than not meeting the Howey requirements of an investment contract. Dark Horse interprets this as a lack of a clear definition for XRP’s classification. However, another crypto enthusiast, known as Utility, disagrees with Dark Horse’s claims and argues that XRP has been found “not guilty” of being a security. Utility points to the ongoing allegations against Ripple for selling unregistered securities as evidence that not all cryptocurrencies have legal clarity. The court documents show that Judge Torres did not categorize XRP as a security but differentiated between Ripple’s sales on exchanges (not securities) and certain sales under written contracts (considered securities). Dark Horse argues that XRP lacks a clear definition beyond not being a security, while Utility highlights the court’s findings and ongoing investigations into Ripple’s sales practices.