Latest Congressional Hearing Proves Judge Torres Correctly Ruled XRP Is Not a Security

A recent United States congressional hearing further confirms that XRP is not a security in itself, aligning with Judge Torres’ reasoning. 

Senator Cynthia Lummis (R-WY), chairperson of the newly formed Senate Banking Committee on Digital Assets, provided insights into the panel’s latest hearing, which focused on the legislative framework of digital assets. 

Senate’s Latest Findings About Crypto

In an X post yesterday, Lummis outlined three major findings relating to digital assets. First, she emphasized that most cryptos do not meet the criteria of the longstanding securities test, Howey. This indicates that digital assets that do not satisfy Howey’s criteria should not be regulated as securities. 

Second, she acknowledged that the United States is behind other nations in creating crypto regulation. Several crypto stakeholders, including Ripple CEO Brad Garlinghouse, have previously echoed this sentiment. 

Lastly, Senator Lummis said the committee learned that stablecoins will bring the United States payment system into the 21st century. This suggests that stablecoins could refine the country’s outdated financial system by offering faster and cheaper payments than traditional alternatives.  

Judge Torres Correctly Ruled XRP Is Not a Security 

As expected, Senator Lummis’ tweet attracted the attention of crypto enthusiasts, with many focusing on the findings relating to the legal status of cryptos. 

Famous crypto lawyer Bill Morgan suggested that this finding confirms that Judge Analisa Torres correctly ruled that XRP is not a security. 

Recall that the judge issued this declaration in July 2023 during her landmark ruling in the SEC v. Ripple lawsuit. However, the judge held that XRP could be sold as part of a security. This was reflected in Ripple’s sale to institutional clients, prompting Judge Torres to label these transactions as investment contracts. 

So you agree Judge Torres was correct in finding XRP itself is not a security in SEC v Ripple. https://t.co/OEHg42839y

— bill morgan (@Belisarius2020) February 27, 2025

Significance for XRP 

Essentially, the U.S. Senate findings on the security status of crypto assets further validate Judge Torres’s classification of XRP. 

Although the Ripple lawsuit is currently in appeal, the SEC is not challenging Judge Torres’s declaration about XRP’s non-security status. Instead, it aims to overturn her ruling on Ripple’s programmatic sales and other distributions of XRP, which she labeled non-investment contracts. 

Notably, the SEC is expected to end the Ripple case in the coming weeks, as it has done in other crypto-related lawsuits. If resolved, this would clear any regulatory uncertainty surrounding XRP, paving the way for the launch of multiple XRP ETFs in the United States.