In a recent discussion on an X forum, Bill Morgan, an experienced lawyer and digital asset enthusiast, dived into the details of the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission.
Amid concerns sparked by a recent Coinbase hearing, Morgan provided comprehensive insights, assuring users that the judgment’s impact would be “neutral” on the Ripple lawsuit.
Coinbase vs. SEC Judgment and Ripple Lawsuit
Addressing the community’s apprehensions, Morgan clarified that the recent Coinbase v. SEC judgment was specific to secondary market sales of certain cryptocurrencies, excluding XRP. He emphasized the limited precedential value of default judgments, highlighting their lack of contested arguments and evidence.
Morgan reassured stating, “This was a default judgment concerning secondary market sales of several cryptos… that did not include XRP.”
Responding to inquiries about Judge Torres’ ruling on XRP’s security status, Morgan clearly stated users to specific sections of the summary judgment decision. He highlighted the clarity provided by the judge on pages 14 and 15 regarding “The XRP Token.” Morgan underlined the judge’s reasoning and refrained from adding further commentary.
Morgan addressed concerns about potential appeals, noting that the SEC had acknowledged XRP’s classification as not being a security.
He clarified that even if successful on appeal, the impact would be confined to Ripple’s programmatic sales and would not extend to other secondary market sales.
Coinbase CLO’s Take on Default Judgment
Coinbase’s Chief Legal Officer Paul Grewal shared his perspective on the recent default judgment. Grewal expressed concerns about the imbalance in proceedings where the defendant fails to appear, emphasizing the lack of value in default judgments as precedents.
Grewal says, “They are not worth anything as precedent or persuasion.”
Shifting focus to the XRP Ledger, the article highlights a significant surge in the XRP burn rate amid a price rally. Data from XRPL explorer XRPScan revealed a substantial increase in the burn rate, reaching 6,721 XRP on March 2, marking the highest intraday burn in over a month.
