Woofun AI reports that Ripple CTO Emeritus David Schwartz contends the SEC's legal theory regarding XRP has been weakened by recent court rulings. Schwartz argues that while the SEC acknowledges XRP is not inherently a security, it still treats the token as such based on holder expectations of profit from Ripple's efforts. He counters former SEC regional director Marc Fagel's view that the case targets only Ripple's sales, noting that buyers in programmatic exchange sales often do not know the seller's identity. The court ruled that institutional sales constituted investment contracts, whereas programmatic sales did not, which Schwartz interprets as a narrowing of the SEC's broader theory.