Regulation

XRP Lawyer Reveals Why Ripple Unlikely To Promote XRP Like Bitcoin

Published

1 month ago

November 12, 2024

XRP lawyer Bill Morgan has explained why Ripple is unlikely to promote XRP in the same way that Bitcoin is widely promoted. The remarks were made in response to a suggestion that Ripple could boost XRP’s popularity among retail investors by engaging in promotional activities similar to those seen with Bitcoin and other cryptocurrencies.

Bill Morgan noted that such actions could impact Ripple’s ongoing legal case with the U.S. Securities and Exchange Commission (SEC).

XRP Lawyer On Why Ripple Unlikely To Promote XRP

XRP lawyer Bill Morgan has emphasized that Ripple’s cautious approach to promoting XRP is largely influenced by its ongoing legal battles with the SEC. He pointed out that the court found Ripple’s sales of XRP did not meet the requirements of the Howey Test—a legal standard used to determine if an asset qualifies as a security.

Specifically, the court ruled that Ripple’s programmatic sales of XRP to retail holders did not constitute investment contracts, a decision largely based on the “relative lack of evidence of promotion of XRP to retail holders,” according to Morgan.

However, the SEC is actively appealing this ruling, and Ripple remains under scrutiny. As a result, any promotional efforts targeting retail investors could increase regulatory risks for Ripple. “I doubt Ripple ever will [promote XRP] and certainly not before legal proceedings are long in the rearview mirror,” Morgan added, highlighting the company’s cautious stance amid regulatory uncertainty.

Bitcoin Enjoys Regulatory Advantage, XRP Lawyer Says

XRP lawyer Bill Morgan has contrasted the promotional limitations on XRP with Bitcoin, noting that Bitcoin holders and advocates can promote the cryptocurrency freely without SEC interference. Since Bitcoin is widely recognized as a non-security asset, it does not face the same regulatory challenges that other digital assets like XRP encounter.

This gives Bitcoin a unique advantage, as supporters can openly encourage investments in Bitcoin without risking legal consequences.

The difference in regulatory treatment has created an “unfair SEC-created advantage over the whole market,” Morgan observed. This discrepancy has allowed Bitcoin’s adoption to flourish without the legal complexities faced by XRP and other assets. As Bitcoin’s price recently surged past $89,000 amid heightened interest from retail and institutional investors, the disparity in regulatory oversight between Bitcoin and other cryptocurrencies has become even more evident.

Concurrently, Cardano’s ADA token saw massive gains after Charles Hoskinson’s announcement, rising over 33% as speculation grew around its potential role in shaping U.S. crypto policy under the current Trump administration.

Legal Developments in SEC v. Ripple Case Ongoing

The SEC’s appeal in the Ripple case has been closely watched by the cryptocurrency industry, as it may set precedents for the treatment of digital assets. Recently, the U.S. Court of Appeals for the Second Circuit issued a scheduling order that requires the SEC to submit its opening brief for the appeal by January 15, 2025.

According to analysts, this delay may be linked to the potential impact of the upcoming U.S. presidential election, as some speculate that a change in administration could lead to shifts in regulatory priorities.

If the SEC fails to meet this deadline, the appeal could be dismissed, potentially providing Ripple with a clearer regulatory pathway. However, until the appeal is resolved, Ripple is likely to maintain a conservative approach regarding XRP promotion, according to legal experts.

Ripple CEO Brad Garlinghouse Optimistic Amid XRP Price Surge

Despite Ripple’s cautious stance, the XRP community has shown renewed optimism about the cryptocurrency’s future. XRP price has recently surpassed $0.61, sparking speculation of a possible price rally reminiscent of its 2017 highs.

Ripple CEO Brad Garlinghouse recently noted that XRP was once the “2nd most valuable digital asset,” and some community members are hopeful that the token may regain its former value as regulatory clarity improves.

Other factors are also boosting market sentiment around XRP, including the possibility of an XRP exchange-traded fund (ETF) approval in the United States, which could increase institutional interest in the asset.