The post Ripple vs. SEC: Why Ripple May Not Promote XRP Like Bitcoin, According to Morgan appeared first on Coinpedia Fintech News
XRP is currently trading at $0.61, having surged nearly 7% recently. The rally, driven by optimism around potential regulatory clarity and broader market movements, could continue to push the price higher, particularly with the ongoing Trump-induced rally that might extend throughout the month.
While the market is rejoicing the pop in the oven with Trump’s victory, there is a wider problem that needs attention the Ripple vs SEC case is the epitome of all regulatory cases and with the current government changes the result is expected positive. Yet as per Morgan Ripple may refrain from promoting it in the US. Here’s Why?
Morgan’s Outlook on XRP Promotion
XRP lawyer Bill Morgan has explained why Ripple is unlikely to promote XRP in the same way Bitcoin is promoted. This is mainly due to Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which imposes limitations on the company.
Morgan pointed out that Ripple’s past sales of XRP to retail investors were not considered investment contracts, a decision based on the lack of promotion of XRP to retail holders. However, since the SEC is appealing this ruling, Ripple remains cautious about any promotional activities that could draw further regulatory scrutiny.
Bitcoin’s Promotional Freedom vs. XRP’s Restrictions
Morgan compared the situation with Bitcoin, which benefits from being recognized as a non-security. This allows Bitcoin holders and advocates to promote the cryptocurrency without fear of legal repercussions. In contrast, XRP faces stricter regulatory challenges, limiting Ripple’s ability to promote it openly. Morgan argued that the SEC’s regulatory treatment creates an “unfair advantage” for Bitcoin over other digital assets like XRP, which could be one reason Bitcoin’s adoption has been able to grow so freely.
Legal Developments in the SEC vs. Ripple Case
The ongoing legal battle between the SEC and Ripple remains a key focus for the crypto community. Recently, the U.S. Court of Appeals set a deadline for the SEC to submit its opening brief by January 15, 2025. The outcome of the appeal could have significant implications for the regulation of digital assets. If the SEC fails to meet the deadline, Ripple could receive a clearer regulatory path, which could boost Ripple’s ability to promote XRP in the future.
Jeremy Hogan’s Take
However, Prominent lawyer Jeremy Hogan believes that a change in leadership at the SEC could lead to the dismissal of numerous non-fraud-related cryptocurrency cases. But, in the case of Ripple, Hogan believes a settlement of around $125 million is a likely outcome. He argues that the SEC would be reluctant to accept anything less than the amount the court has already awarded, signaling a potential resolution without protracted litigation.
What’s Next for XRP Price?
Despite the cautious approach, XRP is seeing more optimism lately as its price recently climbed above $0.61, sparking talks of a possible price rally. Ripple CEO Brad Garlinghouse is confident in XRP’s future, pointing out that it was once the second most valuable crypto. With clearer regulations and the potential for an XRP ETF approval, things are looking good for XRP and its investors.
