Pro-XRP legal expert Bill Morgan has provided insight on the debate surrounding whether Ripple has the right to sell its XRP tokens. Referring to Judge Analisa Torres’ ruling, the lawyer explained how Ripple can conduct these sales without first registering the tokens with the Securities and Exchange Commission (SEC).
Ripple Has The Right To Sell Their XRP Holdings
Morgan emphasized that “nothing prevents Ripple” from selling its XRP tokens, stating that anyone, including the crypto firm, can sell assets they own. However, he noted that the issue lies in the manner in which Ripple conducts these sales.
According to Morgan, if Ripple sells XRP programmatically, similar to past practices, they do not need to register these sales with the SEC. This is based on Judge Torres’ ruling that programmatic XRP sales do not constitute investment contracts. The SEC’s involvement only comes into play when these sales are made to institutional investors.
Morgan’s remarks came following a discussion on whether Ripple had the right to sell its XRP tokens. When questioned about the SEC trying to prevent Ripple from selling its XRP holdings as part of a penalty for institutional sales, Morgan clarified that the SEC’s injunction can only restrict Ripple from conducting institutional sales.
Another user raised a concern about whether Ripple’s sales to ODL customers can be considered institutional sales. The user supported Morgan’s claims that any injunction by the SEC would only apply to institutional sales by Ripple.
How Coinbase’s Case Could Affect The SEC’s Case Against Ripple
Legal expert John Deaton highlighted how Coinbase’s motion to dismiss the SEC’s case against it could expedite a settlement between the Commission and Ripple. The court recently heard Coinbase’s motion, and Judge Failla appeared to favor some points in the crypto exchange’s favor.
A key highlight was the Judge’s reference to pro-crypto Senator Cynthia Lummis’s opinion on how the securities laws that have existed for 90 years may not apply to the crypto space. Lummis has been vocal in calling for the dismissal of the SEC’s case against Coinbase.
Deaton believes that if Judge Failla grants the motion, the SEC “will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple.”
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