XRP Lawyer Reveals Why Ripple Unlikely To Promote XRP Like Bitcoin

by

As a seasoned crypto investor with a decade of experience navigating the volatile and ever-changing landscape of digital assets, I have learned to keep a keen eye on regulatory developments and their potential impact on token prices. In the case of XRP, I find myself in agreement with Bill Morgan’s assessment that Ripple is unlikely to engage in widespread promotional activities similar to those seen with Bitcoin due to its ongoing legal battle with the SEC.

As an analyst, I can share that Bill Morgan, a lawyer associated with the XRP case, recently clarified why Ripple may not actively promote XRP in the same manner as Bitcoin is widely marketed. This explanation came about when there was a suggestion that Ripple could potentially increase XRP’s appeal among individual investors by adopting promotional strategies akin to those commonly used for other cryptocurrencies, such as Bitcoin.

Bill Morgan pointed out that these actions might influence or affect the ongoing dispute between Ripple and the U.S. Securities and Exchange Commission (SEC).

XRP Lawyer On Why Ripple Unlikely To Promote XRP

Lawyer Bill Morgan from Ripple has highlighted that their careful marketing of XRP is primarily due to their ongoing legal disputes with the SEC. He noted that a court ruling declared Ripple’s sales of XRP did not conform to the criteria set by the Howey Test, a legal benchmark for determining if an asset is considered a security.

In essence, the court determined that Ripple’s distribution of XRP tokens to retail investors was not classified as an investment contract. This finding primarily stemmed from the perceived scarcity of proof showing marketing efforts directed towards retail investors, as stated by Morgan.

Although the SEC is currently challenging this decision, Ripple continues to face scrutiny. This situation may increase regulatory risks for Ripple if they choose to promote XRP. As Morgan pointed out, Ripple seems unlikely to promote XRP before legal matters are far behind them, given their cautious approach due to the ongoing regulatory uncertainty.

Bitcoin Enjoys Regulatory Advantage, XRP Lawyer Says

Lawyer Bill Morgan, representing XRP, has highlighted the difference in promotional freedom between XRP and Bitcoin. Unlike Bitcoin, which is generally considered a non-security asset, XRP advocates may face restrictions on promoting the cryptocurrency due to SEC regulations. This is because digital assets like XRP, unlike Bitcoin, often encounter more regulatory hurdles.

Investing in Bitcoin is uniquely beneficial because its backers can freely endorse it without facing potential legal repercussions for their endorsements.

Morgan noted that due to varying regulatory approaches, there’s an “unfair edge given by the SEC to Bitcoin over the entire market.” This difference has allowed Bitcoin to grow in popularity without the legal hurdles encountered by cryptos like XRP and others. With Bitcoin’s price reaching $89,000 and institutional and retail investors showing increased interest, the unequal regulatory supervision between Bitcoin and other crypto assets is becoming increasingly noticeable.

At the same time, the ADA token of Cardano experienced significant increases following Charles Hoskinson’s announcement. The value rose more than 33%, fueled by increasing anticipation about its possible impact on U.S. cryptocurrency regulations during the Trump administration.

Legal Developments in SEC v. Ripple Case Ongoing

The attention of the cryptocurrency sector has been centered on the SEC’s appeal in the Ripple case, as it could establish important guidelines for how digital assets are handled. Notably, the U.S. Court of Appeals for the Second Circuit has issued a timeline that mandates the SEC to submit its initial brief for the appeal by January 15, 2025.

Analysts believe that the delay might be connected to the possible effects of the approaching U.S. presidential election. Some think that a new administration might bring about changes in regulatory focus.

Should the Securities and Exchange Commission (SEC) miss their deadline, there’s a chance that the ongoing appeal could be dropped, offering Ripple a more defined regulatory route. Nevertheless, until the appeal has been settled, Ripple is expected to adopt a cautious stance when it comes to promoting XRP, as suggested by legal analysts.

Ripple CEO Brad Garlinghouse Optimistic Amid XRP Price Surge

Although Ripple has maintained a conservative approach, there’s been a fresh wave of enthusiasm within the XRP community about the digital currency’s future prospects. In fact, the value of XRP has recently climbed over $0.61, fueling discussions about a potential price surge similar to its peak in 2017.

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.

Additionally, other positive influences are contributing to the optimism towards XRP, such as speculation about the potential approval of an XRP-based Exchange Traded Fund (ETF) in the U.S., potentially attracting more institutional investment in this digital asset.

Read More

2024-11-12 03:18