Torres Doctrine Boosts XRP

Judge Analisa Torres’ landmark decision in Ripple vs. US SEC has established the “Torres Doctrine,” a precedent that will restrict the application of the Howey Test to modern blockchain technology.

Judge Torres’ judgment in the most crucial case for not only the XRP community but also the entire cryptocurrency industry was respected by many attorneys and politicians.

John E. Deaton, an attorney who supports XRP, stated on July 19 that the “Torres Doctrine” is a strict application of the Howey Test to modern blockchain technology and cryptocurrencies.

Judge Torres rigorously applied the Howey Test to each form of XRP sale that the US SEC asserted violated securities laws.

In a letter to SEC Chair Gary Gensler, US Congressman Richie Torres referred to Judge Torres’ decision as the “Torres Doctrine,” an adaptation of the Howey Test for the cryptocurrency industry.

It will help bring legal clarity to crypto regulation in the United States in light of the SEC’s failure to regulate cryptocurrencies and its enforcement-based approach to regulation.

Several attorneys, including John Deaton, James Murphy, James K. Filan, and Coinbase’s Paul Grewal, admired Judge Torres’ decision in the Ripple vs. SEC case, which was based on investment contracts, and respected the Howey Test of the Supreme Court.

While institutional sales satisfied all of the Howey test’s criteria, programmatic sales of cryptocurrencies on exchanges did not. Consequently, these transactions do not violate securities laws.

Deaton explained, “There is no component of the Howey Test that requires the judge to evaluate the buyers’ level of sophistication.”

No factor in the Howey test instructs the judge, after applying the Howey factors, to consider whether the outcome is consistent with the policy implications of the 1934 Securities Act.

In an appeal against the court’s decision, Judge Torres can rule that XRP holders and Ripple do not share a joint enterprise.

In addition, she could argue that consumptive intent is a question for the jury, thereby complicating matters for the US SEC.

In the interim, the case has been referred to Judge Sarah Netburn, who has ordered Ripple and the US SEC to resolve other aspects of the lawsuit, including institutional sales.

XRP, Ripple’s native cryptocurrency, has regained momentum by gaining an additional 8% in the last twenty-four hours and is presently trading for over $0.80 with a market capitalization of $41.68 billion.

On the weekly chart, the XRP price has increased by 66% and is the fourth-largest cryptocurrency on the market.

A market analysis forecasts that the XRP price will surpass $1. Egrag Crypto, a Twitter analyst with over 31,000 followers, forecasts that the XRP price will soon reach $27.