Institutions Acquire XRP for Commercial Reasons, Not For Investments! Ripple Must Appeal!

The post Institutions Acquire XRP for Commercial Reasons, Not For Investments! Ripple Must Appeal! appeared first on Coinpedia Fintech News

Digital Asset enthusiast and lawyer, Bill Morgan, recently took to Twitter to emphasize a key point in SEC vs Ripple Lawsuit: institutions using Ripple’s On-Demand Liquidity (ODL) and acquiring XRP do so for business, not for investment. His insights open the door to understanding Ripple’s revolutionary role in the financial world.

XRP’s role as a bridge currency in ODL minimizes cross-border treasury management challenges, streamlines multinational complexities, and paves the way for corporate enterprises to explore new markets with confidence. A step towards the future, indeed!

The Ripple-SEC Lawsuit: A Battle for Clarity

Ripple’s journey hasn’t been all smooth sailing. They found themselves at the center of a lawsuit with the SEC, which alleged that XRP was a security. The lawsuit sent ripples through the crypto community, sparking intense debate and uncertainty.

An Unprecedented Verdict

The judge’s decision, in this case, was nothing short of historic:

• Institutional Sales: Deemed as securities under the Howey test.
• Programmatic Sales and Other Distributions: Not considered securities.

This bifurcated ruling was unprecedented, diving into the complexities of individual transactions, their context, and intent.

Bill Morgan Says Ripple Should Appeal for Clarity

Now, Bill Morgan’s perspective raises an important question: Why hasn’t Ripple appealed the decision that considers institutional sales as non-securities? His argument is that institutions acquire XRP for operational reasons, not as investment vehicles. This presents Ripple with a favorable opportunity to challenge the decision. The spotlight is now on Ripple’s next move.

The ongoing Ripple-SEC case has already left a lasting mark, and how Ripple responds to Morgan’s perspectives could establish an even more crucial precedent for the entire industry.