The Ripple v. SEC Case Update: Lawyer Bill Morgan’s Perspective
While the cryptocurrency community eagerly awaits the ruling in the Ripple v. SEC case, lawyer Bill Morgan has provided his insights on some rarely discussed questions. In a recent Twitter thread, Morgan made a distinction between programmatic sales of XRP and sales to on-demand liquidity (ODL) customers. He argued that sales to ODL customers cannot be investment contracts, as there is no investment or intent to profit from these transactions. On the other hand, programmatic sales refer to open market exchange trades.
- Morgan believes that the SEC would have a stronger case if it had focused on programmatic sales instead of alleging an undifferentiated offering that includes sales to ODL customers.
- Ripple’s decision to pause programmatic sales after the SEC’s warning in 2019 and to direct sales only to ODL customers has raised concerns surrounding programmatic sales.
- However, Morgan emphasized that Ripple’s actions do not necessarily indicate agreement with the SEC’s position, but rather reflect a higher risk that programmatic sales may be considered investment contracts.
Despite the ongoing legal battle, pro-XRP defense attorney John E. Deaton has dismissed rumors of a “secret plot.” He highlighted his involvement and the support of over 76,000 XRP investors, as well as the significant financial resources dedicated to Ripple’s defense. Additionally, Blockchain Association’s chief policy officer Jake Chervinsky argued that SEC chair Gary Gensler incorrectly prejudged all cryptocurrencies as securities, suggesting that he should recuse himself from enforcement decisions related to crypto assets.
As of June 30, the XRP token is currently trading at $0.4762, showing a 1.54% increase for the day but a decline of 3.89% over the past week and a 6.05% drop over the previous month.
Hot Take: The Ripple v. SEC case continues to generate debate and speculation. Bill Morgan’s perspective on the distinction between programmatic sales and sales to ODL customers sheds light on the complexity of the issue. While Ripple’s actions may indicate a higher risk for programmatic sales, it remains to be seen how the court will interpret these transactions.
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