XRP Lawsuit News: Ripple’s Fight with SEC Faces New Twist as Trump Promotes Meme Coin
As President-elect Donald Trump gets ready to become the 47th president of the United States, he has surprised everyone by launching his own cryptocurrency called $TRUMP coin. Despite his previous doubts about cryptocurrency, Trump has expressed his belief that America will become the “crypto capital of the planet” once he returns to Washington.
The timing of this launch has raised some concerns. Critics accuse Trump of taking advantage of his upcoming presidency to profit from the popularity of cryptocurrencies, especially meme coins. However, experts are also considering how this move could impact ongoing legal battles in the crypto space, specifically the high-profile lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Could Trump’s $TRUMP Coin Affect the Ripple Lawsuit?
Attorney Bill Morgan recently discussed the implications of Trump’s actions on the Ripple lawsuit. Morgan pointed out that the appeal of Judge Torres’ ruling against Ripple’s fair notice defense now seems more promising. To provide some context, the SEC has been suing Ripple, claiming that the company’s sale of XRP violated securities laws. However, Ripple argues that it did not have clear notice that its XRP sales were subject to SEC registration requirements.
Morgan highlighted Trump’s stance on cryptocurrencies and investment contracts. While Trump has issued and promoted the $TRUMP meme coin, he does not believe that such tokens should be classified as investment contracts that require SEC registration. This is a crucial issue in the Ripple lawsuit, where the SEC argues that XRP should be treated as a security, while Ripple maintains that it is a digital asset.
Given that Trump has issued a speculative meme coin without adhering to the traditional regulatory frameworks enforced by the SEC on other tokens, Morgan questioned how the SEC v. Ripple case could proceed under these circumstances. He stated that Ripple’s XRP sales, similar to the promotion of $TRUMP, did not involve any post-sale obligations, which is a point of contention in the Ripple case.
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