Crypto attorney Bill Morgan criticized the U.S. Securities and Exchange Commission’s (SEC) recent interlocutory appeal in its lawsuit against Ripple after crypto exchange Coinbase resumed the programmatic sale of XRP. According to Morgan, Coinbase lawyers believe the SEC’s appeal might be rejected in court.
And this is after the SEC made it clear it was seeking certification for an interlocutory appeal of the Court’s finding that programmatic sales are not investment contracts. Coinbase’s lawyers know that this is now of little risk and probably advised Coinbase the interlocutory /1 https://t.co/q3cgQ1rm2t
— bill morgan (@Belisarius2020) August 24, 2023
Morgan also said that Coinbase lawyers don’t perceive much risk regarding XRP. He called out the SEC on their appeal and remarked,
Everyone but the SEC and a certain Fox News journalist can accept the result and want to move on.
Morgan’s tweet was a response to influencer Crypto Eri’s original post analyzing the BNC Governance Index Committee’s latest report. It highlighted that the U.S. District Court of the Southern District of New York ruled on July 13th, 2023, that Ripple’s XRP tokens, when sold on exchanges or via algorithms, did not meet the criteria for being considered investment contracts. Consequently, XRP can’t be classified as a security when it is made available to the public through automated sales or when distributed to Ripple Labs’ employees.
Moreover, the report revealed that following advancements, Coinbase has decided to resume XRP trading. Apparently, the Committee conducted an evaluation of liquidity factors on the Coinbase XRP/USD platform, concluding that the trading volume and depth of the order book satisfy the necessary standards for reintegrating XRP into the XRP Liquid Index (XRPLX). Additionally, the market pair will be effective August 23 onwards, undergoing a 24-hour phase-in process, concluding by Thursday, August 24.
Morgan isn’t the only lawyer supporting XRP in its fight against the SEC. On August 22, legal expert John E Deaton took to Twitter to express the intensity of the damage caused by SEC’s lawsuit against XRP. “THREE YEARS OF ADOPTION – that’s what it’s caused,” he emphasized. Deaton also noted that prior to the case, Coinbase listed and promoted Ripple on the exchange.