Bill Morgan Clears Up XRP Secondary Sales Confusion—What You Should Know

The ongoing legal battle surrounding Ripple raises important questions, especially regarding the secondary sales of XRP. A recent Twitter exchange between well-known lawyer Bill Morgan and XRP YouTuber Moon Lambo provided clarity on this issue, coinciding with the SEC’s recent notice of appeal to the Second Circuit Court of Appeals.

What will the court decide? Investors and enthusiasts are left eagerly waiting.

Insights from Industry Voices

Moon Lambo began the conversation by stating that Ripple’s appeal regarding XRP sales would not affect secondary market transactions. He pointed out that several attorneys have confirmed the appeal likely focuses only on Ripple’s direct transactions.

Lambo also noted that while Ripple’s programmatic sales could be seen as secondary market transactions, the appeal would not necessarily impact individual investors selling on exchanges. He argued that for those investors to be affected, a separate lawsuit specifically targeting cryptocurrency exchanges would need to be filed.

Will Ripple Investors Be Impacted?

In response to Lambo’s tweet, Morgan clarified the confusion about Ripple’s sales and their connection to secondary market transactions. He emphasized that Ripple’s programmatic sales to retail investors through exchanges are different from secondary sales that happen between regular investors on these platforms.

Morgan pointed out that Judge Torres, who oversaw the summary judgment, did not make any rulings on secondary sales among retail investors. Instead, the ruling focused on Ripple’s programmatic sales and other distributions, leaving individual investor sales open to interpretation.

He further explained that since this issue was not covered in the initial ruling, it cannot be included in Ripple’s appeal. Morgan reiterated that the appeal will mainly focus on Ripple’s liability related to programmatic sales or other direct transactions, not trades between independent retail investors.

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XRP Price Reacts

Currently, XRP is trading at $0.51, experiencing a sharp decline of over 14.25% in just 24 hours. This significant drop follows the SEC’s recent appeal to the Second Circuit Court of Appeals, which challenges Judge Analisa Torres’s ruling from two months ago, stating that Ripple Labs did not violate any securities regulations through their programmatic sales to retail exchanges.

As the market faces this downturn, most other cryptocurrencies have only seen a slight decrease of just over 3% today.

The future of XRP hangs in the balance. Only time will tell.