- Bill Morgan says XRP Ledger’s decentralization is irrelevant to Ripple’s outlook and defense.
- Morgan stresses that the defense hinges on the application of the Howey test.
- The tweet was a reply to Cyber Capital’s CIO and his recent comment.
Bill Morgan, a lawyer and digital asset enthusiast, recently commented on Justin Bons, CIO of Cyber Capital’s statement. He is known for sharing his thoughts on the ongoing Ripple vs. SEC case, which has gained significant attention in the cryptocurrency community.
Bons recently tweeted that the XRP vs. SEC case hinges on the decentralized nature of XRPL. He also added that he had been researching XRP since its early days and that he remembers the trade-off of decentralization being recognized.
Morgan had a defensive argument that supported Ripple. He stated that the Ripple defense does not hinge on the XRPL being decentralized or the degree of decentralization. He stressed that, rather, it hinges on the application of the Howey test. Morgan stated:
The factual relevance of decentralization to the application of that legal test [Howey test] is yet to be decided.
Morgan stated that, strangely, it is believed by him that a change to Proof of Stake is necessary for decentralization, but there is a growing inclination in SEC chair Gary Gensler’s comments towards considering staking and rewards as indicators of security. Additionally, he mentioned that the SEC has not provided any reassuring statements regarding Ethereum’s status as a non-security after the Merge.
Morgan recently mentioned Judge Torres’ ruling in the Daubert motion, bringing attention to the crucial matter of whether Ripple sold XRP as a security. The decision has sparked inquiries regarding the SEC’s overall stance on XRP and how it may affect XRP investors and OLD (On-Demand liquidity) customers. Judge Torres’ judgment holds significance as it establishes the boundaries of the case and determines the admissible evidence.
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