Owned by Ripple XRP Discussions regarding the definition of the token as a “security” have been going on for a long time. Lawyer Bill Morgan, known for his closeness to cryptocurrencies, explained his views on the subject. According to the lawyer, the company’s use of “liquidity-on-demand (ODL)” may not be an issue for the court.
Morgan argued that XRP itself cannot be considered a security, based on Judge Torres’ recent decision to seal William Hinman’s email drafts.
According to the lawyer’s argument, the judge RippleHe noted that the company focuses on “ODL” sales in institutional and programmatic sales of XRP token. He pointed out that it was important for the judge to neglect the Howey test, a crucial factor in determining whether an investment contract qualifies as a security.
In addition, neither the judge nor the lawyer SECHe stressed that ODL does not seem bothered by the sale of XRP to its customers. He stressed that the use of tokens in Ripple’s ODL did not meet any part of the Howey test, thus implying that token sales for ODL are not investment contracts and as a result, XRP itself cannot be considered a security.
The lawyer’s views are also closely followed by the community. The community was recently discussing the consequences if the company’s tokens move to a different location. However, the ongoing debate continues to raise questions about the assets and their status.
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