Pro-XRP lawyer highlights potential advantage for SEC in Ripple lawsuit, suggesting a stronger position if SEC focused solely on programmatic XRP sales, clarifying distinction from ODL sales; opinions expressed are personal and not legal advice.
Pro-XRP lawyer, Bill Morgan, has pointed out a potential advantage that the U.S. Securities and Exchange Commission (SEC) could have had in its lawsuit against Ripple. According to Morgan, if the SEC had focused its complaint solely on programmatic XRP sales, it might have been in a stronger position to win the case.
Morgan, an Australian-based attorney, highlighted that the SEC’s complaint against Ripple included allegations against both programmatic XRP sales and sales to On-Demand Liquidity (ODL) clients, categorizing them as securities. However, Morgan suggests that if the SEC had limited its complaint to programmatic XRP sales, it could have presented a more compelling argument.
SEC’s Lawsuit Could Have Been Stronger by Focusing on Programmatic XRP Sales, Says Morgan
Morgan highlighted that the SEC’s position in the lawsuit would have been stronger if it had restricted the complaint to programmatic XRP sales alone, as the current complaint covers a broad offering over an eight-year period, including sales to ODL customers.
In clarifying the distinction between the two types of XRP sales, Morgan emphasized that sales to ODL customers cannot be classified as investment contracts. He noted that ODL clients do not purchase XRP with the intention of investing or expecting profits. Instead, they acquire XRP to facilitate cross-border settlements and use it as a bridge between different fiat currencies.
Additionally, Morgan pointed out that there was a distinction in purpose between Ripple’s programmatic XRP sales and the sales to ODL customers. In the case of programmatic sales, Ripple had no knowledge of the buyers as market makers facilitated the transactions, and Ripple did not impose restrictions on market makers selling XRP to individuals who intended to use it strictly as a currency.
Additionally, Morgan pointed out that Ripple halted its programmatic XRP sales in the fourth quarter of 2019, shortly after receiving a warning from the SEC. This move, according to Morgan, suggests that Ripple may have been concerned that the SEC could consider those transactions as securities. As a result, Ripple focused on selling XRP exclusively to ODL customers.
The ongoing lawsuit between Ripple and the SEC has attracted significant attention within the crypto community. While the outcome of the case remains uncertain, Morgan’s analysis sheds light on potential arguments that could have influenced the SEC’s position if it had chosen a more focused approach in its complaint.
It is important to note that the opinions expressed by attorney Bill Morgan are his own and do not constitute legal advice or a prediction of the lawsuit’s outcome.
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