Compass Investments

– XRP lawsuit: Ripple and SEC ask for extension of time to disclose Hinman file – settlement close?

The launch of the TRUMP token on Friday sparked debate in the crypto community, with some Ripple supporters suggesting that the ongoing court battle between Ripple Labs and the SEC could have an impact.

The token’s popularity has skyrocketed, with its market value surpassing $3 billion in a matter of hours. The token has raised questions about the SEC’s stance on cryptocurrencies like XRP, especially since it lacks typical securities regulation.

Notably, some Ripple supporters argue that if President Trump can promote the token without SEC oversight, XRP should not be classified as a security, especially since the sale of XRP is not accompanied by post-sale obligations.

Sunday In a tweet, popular cryptocurrency lawyer Bill Morgan opined that if President Trump can issue TRUMP tokens without SEC registration, then XRP should be treated the same way.

“Against the idea of requiring contracts and post-sale obligations Ripple’s appeal of Judge Torres’ ruling also looks favorable, Morgan noted. After all, the U.S. president believes that tokens without post-sale obligations can be issued and promoted without having to register with the SEC.

Metalloman, a lawyer supporting Ripple, echoed Morgan’s sentiment, adding, “At this point, I don’t see any upside for Trump or the SEC in continuing the flawed case against Ripple.

These statements followed the SEC’s opening brief in an appeal filed earlier this week seeking to overturn a ruling that XRP is not a security when sold to retail investors. In addition, there has been widespread speculation that many of the SEC’s current cryptocurrency lawsuits could be overturned under President Trump.

As expected, the SEC’s appeal brief is a rehash of arguments that have already failed and will likely be rejected by the next administration, Ripple CEO Stuart Alderoti, chief legal officer, said Thursday after the SEC filed its notice of appeal.

Meanwhile, the value of XRP has risen 30% over the past week despite the general decline in the cryptocurrency market. The rise came after a meeting between Ripple CEO Brad Garlinghouse, Chief Legal Officer Stuart Alderoti and President-elect Donald Trump on Jan. 8. Analysts believe Trump’s influence could accelerate the adoption of cryptocurrencies in the US.