Pro-XRP legal Bill Morgan has weighed in on recent discussions revolving around whether or not Ripple has the rights to sell its XRP tokens. Citing Judge Analisa Torres’ ruling, the lawyer provided insight into how Ripple can make these sales without first registering these tokens with the Securities and Exchange Commission (SEC).
Ripple Has The Right To Sell Their XRP Holdings
Morgan stated in an X (formerly Twitter) post that “nothing prevents Ripple” from selling its XRP tokens. He highlighted how anyone, including the crypto firm, can sell assets that they own. However, he believes the issue is not whether or not Ripple can sell these tokens but the manner in which they have to go about it.
According to him, if Ripple sells XRP programmatically, just like they have done in the past, then they do not need to register these sales with the SEC. This position stems from the fact that Judge Torres already ruled that programmatic XRP sales do not constitute investment contracts. Going by the court’s ruling, the SEC only comes into the picture when these sales are to institutional investors.
Morgan’s remarks came following an argument on whether Ripple had the right to sell its XRP tokens. One X user (Dark Horse) raised the point of the SEC trying to enjoin Ripple from ever selling its XRP holdings as part of the penalty for the company’s institutional sales. Morgan then noted that the SEC’s injunction can only prevent Ripple from making institutional sales.
Another X user (Kashta) then raised a critical point as to whether or not Ripple’s sales to ODL customers can fall under institutional sales. The user also backed Morgan’s claims that any injunction by the SEC would only apply to institutional sales by Ripple.
Token price could see quick jump | Source: XRPUSD on Tradingview.com
How Coinbase’s Case Could Affect The SEC’s Case Against Ripple
Pro-XRP legal expert John Deaton has, on different occasions, highlighted how Coinbase’s motion to dismiss the SEC’s case against it could fast-track a settlement between the Commission and Ripple. The court recently sat to hear Coinbase’s motion, and although no ruling has been made as of yet, Judge Failla looked to make some points in the crypto exchange’s favor.
A key highlight was how the Judge referenced pro-crypto Senator Cynthia Lummis’s opinion on how the securities laws that have been in place for 90 years cannot apply to the crypto space. Interestingly, Lummis happens to be one of those who have called on Judge Failla to dismiss the SEC’s case against Coinbase.
Deaton believes that the SEC “will be forced to pivot its anti-crypto agenda and then work out a possible settlement with Ripple” if Judge Failla grants the motion.
Featured image from Interesting Facts, chart from Tradingview.com
Source: https://bitcoinist.com/ripple-from-selling-its-xrp/