The categorization of XRP as a security has long been a contentious topic, and notable attorney and advocate for digital assets Bill Morgan recently added further fuel to the fire by offering his thoughts on the subject. XRP itself cannot be regarded as a security, according to Morgan, citing a recent decision by Judge Torres involving the unsealing of William Hinman’s email draughts.
Morgan’s main point of contention was on the judge’s acceptance of Ripple’s shift from institutional and programmatic XRP sales to sales of the cryptocurrency especially to On-Demand Liquidity (ODL) consumers, which she referred to as a “product.” He emphasised the significance of the judge’s considerable absence of the Howey test, a key element in assessing whether an investment contract qualifies as a security.
The attorney further emphasised that the sales of XRP to ODL clients didn’t appear to be raising any red flags with the judge or the SEC. He emphasised that the usage of XRP in Ripple’s ODL did not pass any of the Howey test’s requirements, suggesting that XRP sales for ODL are not investment contracts and that, as a result, XRP cannot be regarded as a security in and of itself.
Morgan’s viewpoint follows a recent flare-up of a contentious discussion in the XRP community. The conversation centred on Ripple’s XRP assets and what would occur if a judge ordered the cryptocurrency company to sell them.
The ongoing XRP saga’s most recent twist has reignited debates regarding the cryptocurrency’s regulatory standing. It is still uncertain how the courts and regulatory authorities would categorise XRP at the end of the discussion.
