A recent discussion between legal expert Bill Morgan and a community member named Micah XRP brought to light some critical insights regarding Ripple’s XRP. The focal point? XRP’s status and the implications of its ongoing legal saga with the SEC (Securities and Exchange Commission).
The XRP Conundrum
At the heart of this dialogue was XRP’s recognition as non-security. Bill Morgan pointed out that while XRP itself is clear in this regard, the manner in which Ripple utilizes or trades it remains under scrutiny. This is primarily due to the SEC’s unresolved appeal intentions. Morgan raised concerns about Ripple’s use of XRP in their Liquidity Hub, questioning if it or its clients could be assured of non-interference from SEC enforcement until the lawsuit, and any subsequent appeal is firmly settled.
Liquidity Hub’s Evolving Roster
Ripple recently expanded its Liquidity Hub, adding support for USDC and USDT, the market’s dominant stablecoins. The company commented on its commitment to complying with the rules and responding to its enterprise clients’ demands. This growth raises eyebrows, however, as XRP, once promised to be part of the Liquidity Hub’s asset roster, remains conspicuously absent. In 2021, Ripple had indicated that XRP would be included in the Hub’s assets, and many believed its omission was a byproduct of the ongoing SEC vs. Ripple lawsuit.
Community Queries and Ripple’s Position
Micah XRP’s comment, which prompted Bill Morgan’s detailed response, revolved around the purported reasons for XRP’s absence from the Liquidity Hub. Micah pointed out that XRP now possesses legal clarity, yet it’s still not incorporated into the Hub. Bill Morgan’s feedback further elaborated on the dynamics between XRP holders and Ripple. He clarified that while Ripple may be more attentive to its shareholders and customers, it isn’t bound by any legal responsibilities towards XRP token purchasers.