Trump’s Cryptocurrency Endorsement Raises Questions About SEC’s Authority in Ongoing Ripple Lawsuit

XRP Lawsuit News: Ripple’s Fight with SEC Faces New Twist as Trump Promotes Meme Coin

As President-elect Donald Trump prepares to take office on Monday, he has launched his own cryptocurrency, the $TRUMP coin. The unexpected move has raised eyebrows, particularly among critics who accuse him of capitalizing on his imminent presidency to profit from the popularity of cryptocurrencies, specifically meme coins.

Despite his previous reservations about cryptocurrency, Trump had expressed his belief that America would become “the crypto capital of the planet” once he returned to Washington. While some may see this as a bold step towards embracing innovation and potentially stimulating economic growth, others are concerned that it could have far-reaching implications for the ongoing legal battles in the crypto space.

One such case is the high-profile lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). The regulatory body has been pursuing legal action against Ripple, claiming that the company’s sale of XRP violated securities laws. However, Ripple argues that it had no clear notice that its sales of XRP were subject to SEC registration requirements.

The $TRUMP meme coin could potentially influence the outcome of this case, as some experts believe Trump’s stance on cryptocurrencies and investment contracts may impact the SEC’s actions in the Ripple lawsuit. Specifically, Morgan Bill, an attorney who has been following the Ripple-SEC battle closely, expressed his concerns about the potential implications.

Morgan questioned how the SEC v. Ripple case could continue under these circumstances, given that Trump’s $TRUMP coin did not involve any post-sale obligations to buyers – a point of contention in the Ripple case. He emphasized that, like the promotion of $TRUMP, Ripple’s sales of XRP did not have such obligations.

The attorney suggested that Trump’s actions may raise questions about the SEC’s ability to enforce regulations on tokens and coins issued without post-sale obligations. With Trump’s meme coin lacking these commitments, it becomes challenging for regulatory bodies to dictate what constitutes a security token and which doesn’t.

As a result, Ripple’s case against the SEC could potentially be reevaluated in light of Trump’s new stance on cryptocurrency and investment contracts.

Source: coinpedia.org