- The TRUMP token launch has sparked debate, with Ripple supporters arguing XRP should face similar regulatory treatment.
- Lawyer Bill Morgan supports Ripple’s case, citing Judge Torres’ ruling dismissing post-sale obligations for XRP as security.
- XRP’s 30% price surge reflects legal progress, bolstered by potential ETF launch and new regulatory approvals.
The highly publicized release of the TRUMP token last Friday has triggered an avalanche of controversy in the crypto world, with Ripple fans expressing their concern over what this could imply about the ongoing lawsuit between Ripple Labs and the US Securities and Exchange Commission (SEC).
The TRUMP token gained rapid popularity, its market cap crossing over $3 billion in no time since its launch. This has raised questions about the SEC’s stance regarding cryptocurrencies such as XRP because neither of them has the typical regulatory framework. Ripple proponents argue that if Trump can launch a cryptocurrency without the scrutiny of the SEC, there’s no reason XRP should be treated differently, especially since XRP’s sales didn’t involve post-sale obligations, which usually indicate a security.
On Sunday, prominent crypto lawyer Bill Morgan came out in support of this argument, saying that if President Trump can launch the TRUMP token without SEC registration, then XRP should receive the same treatment. Morgan also mentioned the good appeal of Ripple’s case against the SEC, citing Judge Torres’ decision to reject the notion that the sale of XRP had post-sale obligations to be considered a security.
“The Ripple appeal of Judge Torres’ ruling against the idea that there must be a contract or post-sale obligations is also favorable,” Morgan tweeted “After all, the President of the United States believes a token with no post-sale obligations can be issued and promoted without SEC registration.”
Echoing this sentiment, pro-Ripple lawyer Metalawman added, “At this point, I don’t see any upside for Trump, or for the SEC, in continuing the misbegotten case against Ripple.”
These comments follow the SEC’s ongoing attempts to appeal the court decision that XRP was not a security when sold to retail investors. Given that several of the crypto-related lawsuits brought in by the SEC are likely to be reassessed if a Trump administration comes into power, it only adds to the furor concerning how crypto will be regulated in the times to come.
Ripple’s Legal Breakthrough Imminent as SEC’s Appeal Fades
Ripple’s Chief Legal Officer Stuart Alderoty said on Thursday on the situation following an appeal to the SEC brief this week, calling the SEC’s arguments a “rehash of already failed arguments” that will surely be “dropped by the next administration.” Already, Alderoty’s statements make it a point of certainty that the legal challenges against the token may come to a stop very soon.
Meanwhile, XRP has risen 30% in value over the week- highly contrasted from broader declines across the wider cryptocurrency market. The rally comes hot on the heels of a high-profile meeting between Ripple CEO Brad Garlinghouse, Alderoty, and President-elect Donald Trump on January 8. The meeting has fanned speculation that the involvement of Trump will bolster crypto adoption in the United States and, in turn, boost the token further.
Looking ahead, the path of Ripple seems to be beneficial, as all new developments are coming up. This includes the potential launch of an XRP exchange-traded fund later this year and Ripple’s recent regulatory approvals, which also include its RLUSD stablecoin. This further strengthens investor confidence in the coin and positions XRP well for outperforming other major cryptocurrencies, even at their peak volatility.
While the debate over the TRUMP token and what it means for the crypto space continues, the Ripple case remains a point of focus in the ongoing conversation about cryptocurrency regulation and its future in the United States.
Related | Will ETH Go Absolutely Parabolic? Lightchain AI Bitcoin Layer 2 Technology Gets Whale Attention