- Ripple expands Liquidity Hub to USDT and USDC, but XRP remains out.
- Legal expert says the decision may be due to legal uncertainty and practical considerations.
- The lawyer noted Ripple was likely to prioritize the interests of its shareholders over those of XRP holders.
In recent developments, Ripple has expanded its Liquidity Hub product to accommodate the stablecoins USDT and USDC, catering primarily to institutional investors. However, notable attention has been drawn to the absence of XRP from this list, despite a pivotal US court ruling that affirmed XRP’s classification as a digital asset rather than a security.
The XRP community has expressed its concerns on the X platform. They question why XRP has yet to be included in the Liquidity Hub despite the legal clarity surrounding its status. Supporters argue that this decision appears contradictory, given the recent court ruling.
Addressing the matter, Bill Morgan, a prominent lawyer advocating for XRP, provided some insight. Morgan highlighted the legal nuances surrounding the situation, explaining that while XRP itself has received clarity as a non-security, the status of Ripple’s use or sales of XRP remains uncertain.
XRP has clarity as not itself a security but Ripple's use or sales does not have final clarity given the SEC's intent to appeal. If Ripple uses XRP in LH can it or its customers be certain this will not attract SEC enforcement until the lawsuit & any appeal is finally resolved./1 https://t.co/fDrhDjEd1U— bill morgan (@Belisarius2020) September 16, 2023
In particular, the lawyer noted that the uncertainty stemmed from the Securities and Exchange Commission (SEC)’s intent to appeal the XRP victory judgment. Moreover, Morgan noted that this uncertainty raises questions about potential SEC enforcement actions until the ongoing lawsuit and any subsequent appeals are fully resolved.
Also, Morgan pointed out that, from a practical standpoint, it may not be surprising that assets like Bitcoin, Ether, USDC, and USDT have been included in the Liquidity Hub, given their high liquidity and widespread usage.
Furthermore, he emphasized that Ripple is likely to prioritize the interests and demands of its shareholders and customers over those of XRP holders, a stance consistent with the understanding that there are no inherent legal obligations between Ripple and XRP holders.
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