Ripple Lawyer Says XRP Classification Argument By Bitcoin Maxis Is Flawed
Highlights
- Ripple lawyer emphasized that Judge Torres’ decision, that XRP is not a security in retail sales, offers sufficient legal clarity.
- Morgan pointed to evolving legal definitions, such as Bitcoin's classification as "property" in Australia.
- He further highlighted that understanding what an asset is not, like XRP’s non-security status, is enough.
Ripple lawyer Bill Morgan has put to rest arguments suggesting that XRP lacks legal clarity due to the absence of formal classification. For a while, Bitcoin maxis have been propagating the notion that the lack of classification for the Ripple cryptocurrency means that it holds a legal ambiguity. Morgan called this fundamentally flawed through a logical explanation.
Ripple Lawyer Rejects XRP Classification By Bitcoin Maxis
For years together, Bitcoin has been enjoying the “commodity” status as approved by both – US SEC and US CFTC. However, amid the 4-year-long SEC lawsuit, XRP’s status had been in limbo, until recently when Judge Torres ruled that retail XRP sales don’t constitute as investment contracts, however, institutional sales do classify as one.
Bitcoin maxis have been arguing for a while that there’s not enough legal clarity around XRP since it hasn’t been classified. Ripple lawyer Bill Morgan stated that such an assumption that something unclassified lacks legal clarity is a “logical misstep”. He noted that the concept of “classification” itself is undefined, making the entire argument baseless.
Morgan highlighted that courts do not engage in classification for their own sake. Instead, they resolve specific legal issues brought before them. He emphasized that in the landmark Ripple case, Judge Torres focused solely on determining whether Ripple’s sales of XRP constituted investment contracts, not on whether XRP is a commodity or security.
Last week, Ripple’s Chief Legal Officer, Stuart Alderoty, appreciated the passing of Digital Asset Market Clarity Act, to bring clear crypto regulations in the US. “Clarity shouldn’t be controversial,” he stressed.
There’s No Dilemma In XRP Legal Clarity, Says Morgan
The Ripple lawyer stated that the court’s decision provides sufficient legal clarity about XRP. The fact that Judge Torres concluded Ripple crypto is not a security offers exactly the degree of legal clarity required, said Bill Morgan.
Additionally, Morgan pointed out that even fundamental legal concepts like “property” defy closed definitions. The XRP lawyer said that in his country of Australia, Bitcoin has been classified as a “property”. Thus, if Bitcoin’s classification remains evolving, XRP legal clarity comes from the court’s decision that it is not a security.
“If we do not know exactly what XRP is we certainly have the legal clarity of what it is not: it is not a security,” concluded Bill Morgan. To ensure peace between the XRP and Bitcoin communities, Ripple co-founder Brad Garlinghouse donated the ‘Skull of Satoshi‘ to the Bitcoin community.
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