Ripple’s Right to Sell XRP Tokens
According to legal expert Bill Morgan, Ripple has the right to sell its XRP tokens. He explains that anyone can sell assets they own, including a crypto firm like Ripple. The issue at hand is not whether Ripple can sell these tokens, but rather how they should go about it.
Morgan points out that if Ripple sells XRP programmatically, as they have done in the past, they do not need to register these sales with the SEC. This is because Judge Analisa Torres has already ruled that programmatic XRP sales do not constitute investment contracts. The SEC only comes into play when these sales are made to institutional investors.
Discussion on Ripple’s Sales and SEC Injunction
A user on X raised the question of whether the SEC could prevent Ripple from selling its XRP holdings as part of the penalty for their institutional sales. Morgan clarified that the SEC’s injunction can only apply to institutional sales and cannot prevent Ripple from making other types of sales.
Another user questioned whether Ripple’s sales to ODL customers could be considered institutional sales. Morgan and the user both agreed that any injunction by the SEC would only affect institutional sales by Ripple.
The Impact of Coinbase’s Case on the SEC’s Case Against Ripple
Legal expert John Deaton believes that Coinbase’s motion to dismiss the SEC’s case against them could expedite a settlement between the Commission and Ripple. Although no ruling has been made yet, Judge Failla seemed to favor some of Coinbase’s arguments during the recent hearing.
Of note is Judge Failla referencing Senator Cynthia Lummis’ opinion that securities laws designed for traditional finance may not apply to the crypto space. Lummis has also called for the dismissal of the SEC’s case against Coinbase. Deaton suggests that if the motion is granted, the SEC may be forced to change its stance and seek a settlement with Ripple.
Hot Take: Ripple’s Right to Sell XRP Tokens Upheld, Coinbase’s Case Could Impact SEC’s Case Against Ripple
Legal expert Bill Morgan has affirmed that Ripple has the right to sell its XRP tokens, as anyone can sell assets they own. However, the key issue lies in how Ripple conducts these sales. If they sell XRP programmatically, as they have done in the past, there is no need to register with the SEC. The SEC’s involvement only applies to institutional sales.
The ongoing case between Coinbase and the SEC could have implications for Ripple’s case as well. If Coinbase’s motion to dismiss is granted, it may prompt the SEC to reconsider its approach and seek a settlement with Ripple. The court hearing saw Judge Failla referencing Senator Cynthia Lummis’ view that traditional securities laws may not be applicable to the crypto industry.
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