In the meantime, James Murphy, also known as MetaLawMan, appeared on the Good Morning Crypto Show, expressing optimism that Ripple’s appeal will be more favorably received at a higher court level.
Murphy believes that the relationship between XRP holders and Ripple is fundamentally different from that of traditional investors and companies, which could potentially turn the tide in Ripple’s favor. If Ripple can successfully challenge the court’s ruling, it could potentially remove the imposed penalties, which were calculated based on the number of transactions involving institutional sales and ODL, totaling $125 million.
He argues that the SEC’s interpretation of XRP as a security ignores the fact that XRP holders do not directly gain from Ripple’s profits or operations.
Murphy also believes that past court rulings in cases like Telegram have misinterpreted the nature of digital tokens, leading to confusion about what constitutes an investment contract. Ripple may argue that its sales to institutional investors and certain transactions on the On-Demand Liquidity (ODL) platform are not investment contracts.
The executive sees these sales as wholesale contracts meant for institutions to resell XRP rather than invest in Ripple directly. The case revolves around three main points: XRP sales through exchanges, Ripple’s distribution of XRP to employees, and the sales made by executives Brad Garlinghouse and Chris Larsen.
Ripple’s Chief Legal Officer has suggested the possibility of another Form C filing next week, which many are eagerly awaiting.
The United States Securities and Exchange Commission (SEC) has filed a Form C appeal of a recent court ruling concerning Ripple’s XRP sales.
