Legal Expert Drops Bombshell: Ripple Ruling Won’t Shake Crypto’s Legal Limbo in U.S.

Another day, another courtroom drama—but don’t hold your breath for regulatory clarity. A top legal mind just dashed hopes that the Ripple lawsuit outcome will rewrite the rules for crypto in the U.S.

Why it matters: The SEC’s obsession with enforcement-over-guidance leaves the industry playing chess on a shifting board. Meanwhile, Wall Street quietly stacks Bitcoin ETFs like monopoly money.

The fine print: No landmark redefinition means more ‘innovation’ loopholes—and more sleepless nights for compliance teams. Happy arbitrage!

SEC and Ripple agree not to modify Judge Torres summary judgment decisionSEC and Ripple agree not to modify Judge Torres' summary judgment decision For context, in the summary judgment decision, the judge stated that XRP is not a security in itself. She also declared that Ripple’s XRP sales to institutional clients were investment contracts, but those conducted on digital exchanges were not.  The summary judgment decision has played a crucial role in determining the legal status of crypto. According to the ruling, cryptocurrencies are not securities, but can be sold as part of an investment contract.  In the meantime, the broader legal uncertainty around crypto’s status may soon be addressed. The U.S. Senate recently introduced legislation that would specify the criteria determining when a crypto asset should be classified as a commodity or security.