Ripple Ruling Controversy
Fox Business’s Charles Gasparino has clashed with Ripple CTO David Schwartz on X over the controversial Torres ruling, which recognized secondary XRP sales as nonsecurities back in 2023.
Gasparino insists that the “nonsensical” ruling made no sense, while Schwartz claims that the controversial journalist is struggling to understand securities laws.
> “That you have difficulty understanding an incredibly simple basic fact about securities law is entirely a you problem,” Schwartz said.
The recent spat comes after Ripple dropped its cross-appeal against the SEC after its fine was reduced to $50 million, marking the likely end of a long-lasting legal battle. The SEC abandoned its appeal earlier this month. Gasparino, however, did not see this as a big win for the company.
According to the reporter, the fine is still a “stiff one” despite representing only a fraction of what the SEC initially demanded. “That said, Ripple insiders are billionaires many times over, so, net-net, this isn’t going to put anyone at the top of the firm in the poor house,” he added.
Gasparino recalled how Judge Jed Rakoff “threw shade” on the Torres ruling by refusing to differentiate retail sales from institutional sales, meaning issues from this case will continue to persist.
The reporter has repeatedly criticized the ruling due to its provision for a lower disclosure standard for retail investors compared to institutions.
He has predicted that incoming SEC Chair Paul Atkins will be asked to address this contradiction.
However, Schwartz has rejected the criticism, arguing that the rulings were misinterpreted by Gasparino.
> “Torres absolutely did not hold that secondary sales of a token are never offers of securities, nor did she hold that retail purchases were generally entitled to different disclosures than institutional purchasers,” Schwartz clarified.
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