Ripple vs SEC: Bill Morgan Clarifies Court Ruling on XRP Sales

Is XRP a security? The legal battle between Ripple and the SEC has taken a surprising turn. Renowned lawyer and crypto enthusiast Bill Morgan has stepped into the ring, sparking a heated debate on Twitter. Morgan argues there’s been a major misunderstanding – but what exactly is it?

Dive deeper to learn more about Morgan’s insights and how they could impact the entire crypto market.

Disputing Stark’s Claims

The discussion gained momentum when Morgan learned of former SEC director John Reed Stark’s assertion. Stark argued that the judge overseeing the Coinbase-SEC case significantly disagreed with Judge Torres’ ruling, suggesting that secondary sales of XRP could indeed constitute investment contracts or unregistered securities.

Morgan promptly rebuffed Stark’s claim, labeling it as erroneous. He emphasized that Torres had not made any such declaration regarding secondary market sales of XRP, prompting him to question the basis of Failla’s disagreement.

Also Check Out: Ripple vs. SEC Settlement Looming? Here’s What You Should Know

Clashing of Views

The debate intensified as legal expert Marc Fagel challenged Morgan’s stance. Fagel expressed skepticism about how token sales via exchanges could meet Torres’ stringent Howey standard.

Undeterred, Morgan respectfully disagreed with Fagel’s skepticism, elucidating that Torres’ scrutiny primarily focused on Ripple’s programmatic sales, a subset specified by the SEC. He underscored Torres’ discernment, highlighting her determination that these programmatic sales did not qualify as investment contracts.

Morgan further clarified that Torres acknowledged Ripple’s targeted promotion of XRP to institutional investors but found no substantial evidence of widespread dissemination. He emphasized that such nuanced findings cannot be indiscriminately applied to other cryptocurrencies, citing Solana as an example.

The Howey Test – More Complex Than It Seems?

Morgan challenged the notion that Torres’ ruling on programmatic XRP sales automatically precludes all secondary market crypto sales from constituting investment contracts. He emphasized the fact-specific nature of the test, affirming that Torres’ findings do not universally negate the possibility.

Morgan concluded by asserting that Torres’ conclusions were grounded in uncontested evidence, diminishing the likelihood of a successful appeal by the SEC. In his expert opinion, the SEC’s appeal prospects appear bleak in light of Torres’ comprehensive evaluation.

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