The crypto community is currently embroiled in a debate over Ripple’s right to sell XRP tokens, sparked by a recent stock exchange between XRP lawyer Bill Morgan and a crypto analyst known as “Darkhorse” on social media platform
This discussion delves into the legal complexities and market implications of Ripple’s actions regarding XRP sales.
There is nothing stopping Ripple from selling its XRP. Anyone can sell an asset he owns. The question is whether US sales and offerings of XRP must register with the SEC. If Ripple sells XRP programmatically, as it has in the past, it doesn’t need to record the sales… https://t.co/vHbeCTpeP0
— Bill Morgan (@Belisarius2020) January 16, 2024
Legal Debate: Ripple’s Rights to Sell XRP
Bill Morgan, a staunch defender of XRP, argued that Ripple has no legal restrictions on “selling its XRP tokens except in the context of institutional sales.”
This claim was in response to a crypto analyst, Darkhorse’s reference to a ruling by Judge Analisa Torres in July 2023, which, according to the analyst, did not allow Ripple to sell XRP.
Morgan claimed that Ripple is legally allowed to sell its XRP holdings, clarifying that the company’s sales should not be viewed as investment contracts under US securities law.
Morgan further noted that there is nothing “stopping Ripple from selling its XRP.” “The question is whether US sales and offerings of XRP must register with the [Securities and Exchange Commission] SEC.”
Following Judge Torres’ decision, another user on X highlighted an important point regarding Ripple’s XRP sales. Based on the judge’s reasoning, these sales “could now be considered securities transactions.”
This change in classification, the user explained, comes as Ripple’s involvement in XRP is now publicly acknowledged, which could lead to expectations of appreciation from the payments company’s activities.
Previously, such sales were not classified as securities transactions due to a “lack of evidence” that retail buyers were aware of Ripple’s role in XRP. However, this changed the post-Judge Torres decision, making Ripple’s involvement a publicly acknowledged fact.
In response, Morgan suggested that despite this public awareness, XRP’s price performance over the past five years indicates that expecting profits from Ripple’s efforts may not be “reasonable.” The XRP lawyer further suggested that those who bought XRP after the July 13 decision with such expectations “could be irrational or in need of help.”
Whether aware or not, XRP’s price performance over the past five years suggests that anyone who has acquired XRP since the July 13 decision and thinks Ripple’s efforts will lead to profits from a price increase in the asset, has no ‘reasonable expectation’. ‘ and maybe… https://t.co/WhKCyGWpA0
— Bill Morgan (@Belisarius2020) January 17, 2024
Ripple XRP Sales and Market Impact
The debate follows in particular the recent developments of Ripple Handover of 80 million XRP tokens, worth approximately $46.18 million, to an undisclosed wallet. This transaction, reported by blockchain tracking service Whale Alert, has fueled speculation in the XRP community.
Amid these developments, XRP market performance has seen fluctuations. The asset saw a decline of 1.5% over the past 24 hours, dropping its price to $0.566. However, over the past week, XRP has shown resilience, rising 2.6%. XRP trading volume also took a dip, dropping from over $1 billion last Wednesday to $827 million in the past 24 hours.
Featured image from Unsplash, chart from TradingView
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