In anticipation of his inauguration as the 47th president of the United States on Monday, President-elect Donald Trump has initiated his own cryptocurrency, the $TRUMP coin.
Trump had stated that he was confident that America would become “the crypto capital of the planet” upon his return to Washington, despite his previous reservations regarding cryptocurrency.
Some individuals have expressed concern regarding the launch’s timing. Critics have accused Trump of exploiting the popularity of cryptocurrencies, particularly meme coins, to profit from his impending presidency. Nevertheless, certain experts are concentrating on the potential implications of this decision for the ongoing legal disputes in the cryptocurrency sector, particularly the high-profile lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
Most recently, Attorney Bill Morgan addressed the implications of Trump’s actions on the Ripple lawsuit. Morgan observed that the appeal of Judge Torres’ decision to reject Ripple’s fair notice defence is now more promising. To provide context, the SEC has been pursuing legal action against Ripple, alleging that the company’s sale of XRP violated securities laws. Nevertheless, Ripple contends that it was completely unaware that its XRP transactions were subject to SEC registration requirements.
Morgan underscored Trump’s position regarding investment contracts and cryptocurrencies. While Trump has developed and promoted the $TRUMP meme currency, he does not feel that such tokens should be categorized as investment contracts and so need SEC registration. This is a critical issue in the Ripple litigation, in which the SEC contends that XRP should be classified as a security, while Ripple maintains that it is a digital asset.
Morgan questioned the continuation of the SEC v. Ripple case in light of the fact that Trump released a speculative meme coin without keeping to the traditional regulatory frameworks that the SEC enforces on other tokens. He stated that Ripple’s sales of XRP, similar to the promotion of $TRUMP, did not entail any post-sale obligations, which is a point of dispute in the Ripple case.
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