The Ripple XRP Sales Debate: Is Ripple Still Legally Permitted to Sell its Tokens?

A fiery debate has erupted in the crypto community regarding Ripple’s ability to sell its XRP tokens. The dispute unfolded on the X platform between XRP advocate Bill Morgan and crypto analyst “Darkhorse,” setting the stage for a legal discussion.

Bill Morgan argues that Ripple has every right to sell XRP and that there are no legal constraints, except for institutional transactions. Darkhorse counters this by referring to a ruling by Judge Analisa Torres in July 2023, suggesting that Ripple may face restrictions on XRP sales.

Morgan asserts that selling XRP is within Ripple’s legal rights and clarifies that these sales should not be considered investment contracts under U.S. Securities law. He emphasizes that Ripple is not prevented from selling its XRP, and the real question is whether it needs to register these sales with the Securities and Exchange Commission (SEC) in the U.S.

Following Judge Torres’ decision, another X user highlights an important aspect regarding Ripple’s XRP sales. With the recognition of Ripple’s involvement with XRP, these sales may now be classified as securities transactions, implying expectations of increased value due to Ripple’s activities.

Morgan counters this argument by pointing to the historical performance of XRP’s price over the past five years. He suggests that expecting profits from Ripple’s efforts might be seen as unreasonable, especially for those entering the XRP market after July 13th. To him, such expectations could be perceived as irrational.

All of this debate takes place as Ripple recently transferred 80 million XRP tokens, worth approximately $46.18 million, to an undisclosed wallet. This transaction has sparked speculation within the XRP community.

These developments have had an impact on XRP’s market performance. While there has been a 1.5% decline in the past 24 hours, with XRP’s price dipping to $0.566, it has shown resilience over the past week with a 2.6% increase.