The matter at the heart of all this is the Securities and Exchange Commission case against Ripple, with the regulator claiming XRP had been sold by the company and its executives without either being registered as a security or the firm seeking an exemption.
A lawyer has chimed in on this, describing the bombshell comments made by the magistrate judge in the ongoing lawsuit between the regulator and the blockchain payments provider.
In a YouTube video published Saturday, attorney Jeremy Hogan, who is not involved in the case, said that Judge Sarah Netburn of the Southern Court in New York interrupted the discussion to apparently suggest that the XRP cryptocurrency is more like a currency than a security.
Her comments came during a virtual hearing over the SEC’s attempt to obtain personal financial information from Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen.
Netburn is not the primary judge in the case, but she is assisting District Judge Analisa Torres with aspects of the case like discovery and mediation.
Hogan is of the understanding that XRP not only has a currency value but it has a utility. And it is that utility that distinguishes it from Bitcoin and Ether. He says that no matter what the SEC may try and argue, a currency and a security are by definition in opposite — these are two different things.
Furthermore, the lawyer adds that the judge offering the view that XRP has utility is exactly what Ripple wants the court to be thinking.
Ripple, he says, should be feeling pretty good that their mediator and consulting summary judgement judge just said on the record what the company essentially argued in its pleadings.
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