Crypto Community Divided Over XRP Security Designation

X user Joe Sho and crypto lawyer Bill Morgan debated the legal status of Ripple’s XRP. Sho, in a tweet, expressed uncertainty about the legal clarity surrounding XRP, prompting a response from Morgan that sheds light on the complexities of the matter.

“I think there definitely is, Joe. “Only some Bitcoin maxis who cannot read or understand a court decision or who are too biased or obtuse to accept the judge’s clear words that XRP itself is not a security security disagree,” Morgan stated in his response. , pointing out a divergence of opinions within the cryptocurrency community.

Morgan also highlighted significant progress, referring to a letter from the Securities and Exchange Commission (SEC) to the court. The letter explicitly stated that the SEC was not seeking a review of the finding that XRP is not a security.

In another conversation exchange on X, Ripple’s chief technology officer (CTO) recently delved into the complexities of US securities law in a tweet. The CTO spoke about tokens as securities, highlighting the Howey case, a landmark Supreme Court decision that outlined the criteria for an investment contract.

However, the CTO noted that the “Howey test is flexible and cannot be applied robotically,” which led to several court cases determining the classification of specific agreements. The crux of the matter, as the CTO explains, revolves around the expectation that benefits will come “solely” from the efforts of others. Morgan responded and praised the CTO’s explanation as excellent for a complex topic.