<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/institutions-acquire-xrp-for-commercial-reasons-not-for-investments-ripple-must-appeal/">Institutions Acquire XRP for Commercial Reasons, Not For Investments! Ripple Must Appeal!</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>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.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
   <p lang="en" dir="ltr">So institutions who use ODL and acquire XRP to use as a bridge currency may do so for these commercial reasons<img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> not for investments with an expectation of profits from XRP price appreciation. How can Ripple not appeal the finding XRP sales to ODL users are investment contracts. <a href="https://t.co/4f7LoiHFZI" rel="noopener noreferrer nofollow">https://t.co/4f7LoiHFZI</a> <a href="https://t.co/6xffM6ZhD5" rel="noopener noreferrer nofollow">pic.twitter.com/6xffM6ZhD5</a></p>— bill morgan (@Belisarius2020) <a href="https://twitter.com/Belisarius2020/status/1691611226856697946?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 16, 2023</a> 
  </blockquote> 
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div> 
</figure> 
<p>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!</p> 
<h2 id="the-ripple-sec-lawsuit-a-battle-for-clarity" data-name="the-ripple-sec-lawsuit-a-battle-for-clarity" class="wp-block-heading"><strong>The Ripple-SEC Lawsuit: A Battle for Clarity</strong></h2> 
<p>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.</p> 
<h2 id="an-unprecedented-verdict" data-name="an-unprecedented-verdict" class="wp-block-heading"><strong>An Unprecedented Verdict</strong></h2> 
<p>The judge’s decision, in this case, was nothing short of historic:</p> 
<ul> 
 <li><strong>Institutional Sales:</strong> Deemed as securities under the Howey test.</li> 
 <li><strong>Programmatic Sales and Other Distributions:</strong> Not considered securities.</li> 
</ul> 
<p>This bifurcated ruling was unprecedented, diving into the complexities of individual transactions, their context, and intent.</p> 
<h2 id="bill-morgan-says-ripple-should-appeal-for-clarity" data-name="bill-morgan-says-ripple-should-appeal-for-clarity" class="wp-block-heading"><strong>Bill Morgan Says Ripple Should Appeal for Clarity</strong></h2> 
<p>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 <a href="https://twitter.com/Ripple/status/1691593120142578076" rel="noopener noreferrer nofollow">Ripple’s next move</a>.</p> 
<p>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.</p>

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

Table of Contents

CoinPedia News

Other articles published on Aug 16, 2023

Hord and SSV Partner to Revolutionize Staking with DVT Integration

XLM At Key Support Level, Analysts Cite InQubeta’s coin burning mechanism As Chief Price Propella...

Crypto on alert as Michael Burry goes short on US Markets

PayPal Stops Bitcoin Services In This Country!

Shiba Inu: Shibarium Launch Hint Sparks 33 Billion SHIB Transfer

Axelar Foundation Introduces AXL Token for Cross-Chain Communication

Join our free newsletter for daily crypto updates!