Ripple SEC Victory: 4,000 XRP Holder Affidavits Shaped Judge's Ruling
In brief
- Judge Torres ruled XRP itself is not a security, distinguishing secondary market sales from institutional direct sales.
- John Deaton's amicus brief represented 76,000 XRP holders; nearly 4,000 submitted individual affidavits.
- Judge Torres cited Deaton's amicus brief, holder affidavits, and his LBRY case argument in her decision.
- The ruling marked a turning point in regulatory clarity for digital assets.
Community Voices in Court
John Deaton, founder of CryptoLaw, was granted leave to file an amicus brief representing the interests of nearly 76,000 XRP holders. He backed that representation with nearly 4,000 XRP holder affidavits submitted directly to the court. Those documents carried weight with the bench.
Judge Torres cited three key elements from Deaton's advocacy in her final ruling. First, she cited the amicus brief itself. Second, when ruling that "XRP itself is not a security," Torres specifically cited the nearly 4,000 XRP holder affidavits submitted to the case. Third, she cited oral argument that Deaton made in the LBRY case relating to secondary market sales of digital assets — precedent that informed her reasoning.
A Turning Point for Crypto
The ruling established a critical distinction. Ripple's sales of XRP through secondary trading platforms did not constitute securities transactions. Its direct sales to institutional investors did. That split-the-difference approach gave the industry clearer guardrails.
Vet, a validator and director of community at XRP Ledger Foundation, called the anniversary a milestone. The judge's ruling that XRP is not a security represented a major turning point and, in his view, the beginning of the end of the SEC's war on crypto. Whether that interpretation holds depends on how regulators and courts apply Torres's logic to other digital assets.
The case showed that grassroots participation — thousands of holders filing affidavits — can influence high-stakes regulatory litigation. It's a reminder that the crypto community's voice, when organized and documented, reaches the courtroom.
