An observer in the Ripple-Twitter space caught the attention of cryptocurrency lawyer Bill Morgan, not long after he predicted that Ripple would lose its case with the U.S. Securities and Exchange Commission (SEC).
The observer who describes himself as a Crypto Enthusiast is convinced that Ripple will lose to the SEC. He further added that Ripple will proceed to register their XRP sales with the SEC after their loss.
In the long run, the case will become the SEC’s poster child to push for more registration of tokens within the industry. He conclusively predicted that XRP will be relisted on all exchanges later on.
His reasons tie to a question highlighted in another tweet. “What’s stopping Ripple or any other crypto project/company from doing this? Does a “commodity” designation really mean that much when we know most of these assets aren’t commodities?” He quizzed.
In response to his tweet, Attorney and digital asset enthusiast Bill Morgan explained that the evidence in the case reveals that Ripple’s sales are not up to 1% of CRP sales. The SEC also mentioned that all CRP sales are investment contracts. For this reason, Morgan concludes that the SEC does not need to resign any offer.
“Secondly, how can Ripple register offers of XRP it makes when ODL is meant to allow transactions & the SEC may take months to register an offer. Even if registration is possible for some tokens it can’t work in its current form for a token meant to be used as a bridge currency.” He further asserted.
In conclusion, Morgan believes that registration doesn’t help Ripple as Ripple on-demand liquidity (ODL) is meant to allow for swift cross-border transactions, so as to allow customers to overcome the consistent price volatility in the market. With that being the case, it is impossible for Ripple to wait for each sale to an ODL customer to be registered.
The debates come not long after Ripple’s CEO, Brad Garlinghouse, optimistically told CNBC’s Squawk Box, that judges will take as much time as they want, but he’s certain that the case will likely get a ruling in the first half of 2023.
Meanwhile, as far as attorneys like John Deaton are concerned, Ripple stands a higher chance of winning against the SEC. Deaton, who maintained that he is uncertain how the case will play out, is rather positive that Ripple has a good fighting chance.