Judge Analisa Torres’ landmark decision in the Ripple vs US SEC created the “Torres Doctrine”, a precedent that will limit the application of the US Supreme Court’s Howey test to modern blockchain technology. Many lawyers and politicians respected Judge Torres’ ruling in the most crucial case not only for the XRP community, but for the entire crypto industry.
John Deaton explains the significance of the “Torres Doctrine” to the crypto industry
Pro-XRP attorney John E. Deaton said on July 19 that the “Torres Doctrine” is a strict application of the Howey test to modern blockchain technology and crypto assets. Judge Torres applied the Howey test strictly to any type of XRP sale that the US SEC alleged violated securities laws.
US Congressman Richie Torres in a letter SEC Chairman Gary Gensler called Judge Torres’ decision the “Torres Doctrine,” a modified Howey test for the crypto industry. It will help bring legal clarity to crypto regulation in the US amid the SEC’s failure to regulate crypto and take regulation through enforcement.
“THE TORRES TEACHING,” AS IT HAS BEEN CALLED, IS SIMPLY A STRICT APPLICATION OF A 1946 TEST TO MODERN BLOCKCHAIN TECHNOLOGY.
Judge Torres applied the Howey test strictly to each type #XRP sale that the SEC claimed violated the law. https://t.co/bqel8bGIMK
— John E Deaton (@JohnEDeaton1) July 19, 2023
Several attorneys, including Coinbase’s John Deaton, James Murphy, James K. Filan and Paul Grewal, appreciated Judge Torres’ decision in the Ripple vs SEC case based on investment contracts, subject to the Supreme Court’s Howey test.
While institutional selling met all factors of the Howey test, programmatic selling of crypto on exchanges failed to meet all factors of the test. Therefore, these sales do not violate securities laws.
Deaton explained, “There is no point of the Howey test that asks the judge to evaluate the level of sophistication with respect to the buyers. There is no factor in the Howey test that instructs the court, after applying the Howey factors, to then consider whether the result is consistent with the policy implications behind the Securities Act of 1934.”
On appeal against the court’s decision, Judge Torres may rule that the common enterprise factor between XRP holders and Ripple has not been met. Also, she could decide that consumer intent is an issue for the jury, making it more difficult for the US SEC.
Meanwhile, the case is being referred to Judge Sarah Netburn, who has ordered Ripple and the US SEC to settle other parts of the lawsuit, such as institutional sales.
Also Read: Binance Burns 1.99 Million BNB Tokens Worth $619 Million, Price Recovery Ahead?
XRP price is skyrocketing
Ripple’s native cryptocurrency XRP has gained momentum again, shooting another 8% in the past 24 hours and is currently trading above $0.80 with a market cap of $41.68 billion. XRP price is up 66% on the weekly chart and is the fourth largest cryptocurrency in the market.
An analysis by CoinGape Markets predicts XRP price to move above $1. Egrag Crypto, an analyst with more than 31,000 followers on Twitter, predicts that XRP price is heading for a high of $27.
Also Read: Presidential Candidate RFK Jr. plans to support the US dollar with Bitcoin and end taxes
Varinder has 10 years of experience in the Fintech sector, with more than 5 years dedicated to blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles and newspapers. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Pro-XRP Advocate Explains Custom Howey Test “Torres Doctrine” To Crypto Industry
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