The cryptocurrency industry is eagerly awaiting the conclusion of the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple. In the midst of this legal battle, pro-XRP legal expert Bill Morgan has provided additional arguments in favor of Ripple’s position.
In a discussion involving Mr. Huber, a well-known member of the XRP community, and former SEC enforcement attorney Marc Fagel, Morgan asked several pertinent questions. He questioned why the SEC had not filed a court order if Ripple had engaged in any malicious or illegal activity beyond “selling unregistered securities”. Morgan argued that if Ripple’s actions were clearly illegal and harmed investors, the SEC should seek protection for investors.
Morgan further explained that the SEC is holding back from filing the order because, since May 2020, Ripple has only engaged in on-demand (ODL) liquidity sales. The SEC risks undermining its argument that XRP is a security by admitting that an ODL sale is not an investment contract. ODL customers transact XRP in seconds for fast and inexpensive cross-border payments, which are not an investment.
Previously, Morgan highlighted the differences between programmatic selling or XRP open market exchange trading and selling through Ripple’s ODL system. He argues that the sale of XRP to an ODL customer cannot constitute an investment contract because there is no investment intention or expectation of profit by the customer, who holds XRP for a short period of time and uses it for consumption purposes.
Morgan also criticized the SEC’s practices, claiming they failed to achieve clarity. He cites the example of Dash (DASH), which was suddenly deemed safe by the SEC nine years after its launch in 2014, even though there is no indication that Proof-of-Work (PoW) tokens mined like Dash are securities.
As the lawsuit continues, XRP’s price stood at $0.4815 at the time of publication. It has suffered a slight decline of 0.28% in the last 24 hours, a 0.86% decline over the previous seven days, and a more significant drop of 8.77% on the monthly chart as of July 3.