Bitrabo Editorial
Australian attorney Bill Morgan recently shared his thoughts on Ripple’s XRP token on Twitter in regards to ongoing discussions regarding the Ripple vs SEC lawsuit. Morgan believes that XRP cannot be considered a security.
The Judge’s Ruling is Important
Morgan explained that the ruling of US District Court Judge Analisa Torres is crucial to the case. If the judge decides that Ripple’s sales of XRP to On-Demand Liquidity customers are not investment contracts and have no profit indication, then XRP should not be categorized as a security.
Digital Assets Can Re-Transition to Non-Security Status
Morgan also pointed out that digital assets could move from being securities to not being securities again. He mentioned that four major factors could lead to such transitions: economic reality, technology, the law, and the asset’s legal classification in other jurisdictions.
Furthermore, Morgan maintained that if the judge finds that XRP sales to On-Demand Liquidity customers are not investment contracts, XRP is not a security. Attorney Bill Morgan thinks that Ripple has a good chance of winning the case despite the allegations of SEC’s violation of securities laws.
The judge’s ruling will be closely watched by the cryptocurrency industry as it could set a precedent for future SEC cases.