Lawyer Argues in Favor of Ripple in SEC Lawsuit
A pro-XRP legal expert, Bill Morgan, has expressed support for Ripple in the ongoing lawsuit filed by the United States Securities and Exchange Commission (SEC). Morgan joined a discussion with XRP community member Mr. Huber and former SEC enforcement lawyer Marc Fagel, raising questions about the SEC’s actions. He suggested that if Ripple had engaged in illegal activities, the SEC should have filed an injunction to protect investors. Morgan also argued that Ripple’s on-demand liquidity (ODL) sales are not investment contracts and therefore should not be considered securities. He highlighted that ODL customers use XRP for fast, cheap cross-border payments, not as investments.
Ripple’s ODL System and Investment Contracts
Morgan emphasized the difference between programmatic sales or open market exchange trades of XRP and sales through Ripple’s ODL system. He stated that XRP sales to ODL customers cannot be classified as investment contracts because ODL customers do not invest in the token or expect profits. Instead, they use XRP for short-term cross-border payments, similar to consumption. This argument challenges the SEC’s claim that XRP is a security.
SEC’s Lack of Clarity and Dash Example
Morgan criticized the SEC’s practices, stating that they do not achieve clarity. He cited the example of Dash, which the SEC suddenly deemed a security nine years after its launch. Morgan highlighted that there was no indication that Proof-of-Work (PoW) tokens like Dash were securities. This inconsistency raises concerns about the SEC’s decision-making process and its impact on the cryptocurrency industry.
XRP Price Update
As of July 3, 2023, the price of XRP was $0.4815. It had experienced a slight decrease of 0.28% in the past 24 hours, a drop of 0.86% over the previous seven days, and a more significant decline of 8.77% on its monthly chart.
Hot Take
The arguments presented by lawyer Bill Morgan provide valuable insights into the Ripple v. SEC case. His perspective challenges the SEC’s classification of XRP as a security and raises questions about the regulator’s actions. This case highlights the need for clarity and consistency in cryptocurrency regulations to ensure fair treatment for industry participants.
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