Pro-XRP lawyer Bill Morgan defends Ripple’s ODL transactions as a legitimate service for money transfers, while the SEC seeks more disclosure from Ripple in the ongoing legal dispute over XRP classification.
Ripple’s ODL transactions are a service offered by Ripple, a blockchain company that provides cross-border payment solutions using its native cryptocurrency, XRP.
ODL stands for On-Demand Liquidity, and it allows customers to send and receive money in different currencies using XRP as a bridge. ODL transactions are designed to be faster, cheaper, and more efficient than traditional methods of money transfers.
Ripple’s ODL transactions are under scrutiny by the U.S. Securities and Exchange Commission (SEC), which has sued Ripple and two of its executives for allegedly selling unregistered securities in the form of XRP. The SEC claims that XRP is a security and that Ripple’s ODL transactions are investment contracts, meaning that customers who buy XRP expect to profit from Ripple’s efforts.
Ripple denies these allegations and argues that XRP is a currency and a medium of exchange, not a security. Ripple also contends that its ODL transactions are not investment contracts but rather a service for money transfers that do not create any expectation of profit or dependence on Ripple.
The legal dispute over Ripple’s ODL transactions is unfolding in the U.S. District Court for the Southern District of New York, where the SEC and Ripple have filed cross-motions for summary judgment.
The court has granted the SEC’s motion to compel Ripple to disclose more information about its ODL transactions, including its financial statements from 2022 to 2023 and its post-complaint contracts with institutional customers. The court has also granted Ripple’s motion to access the SEC’s internal documents regarding its views on XRP and other cryptocurrencies.
Meanwhile, pro-XRP lawyer Bill Morgan, who is not involved in the case but has been following it closely, has defended Ripple’s ODL transactions on social media, arguing that they are not investment contracts and that the SEC’s case is weak and misguided.
Morgan has also expressed his optimism that Ripple will prevail in the lawsuit and that XRP will be recognized as a non-security.
