Ripple Legal Chief Exposes Critical Weakness in Bitcoin Maximalists’ XRP Critique

A Ripple executive has dismantled the core argument Bitcoin maximalists use against XRP—revealing a fundamental logical flaw in their reasoning.

The takedown comes as the crypto community debates the role of alternative assets in a Bitcoin-dominated ecosystem.

Legal experts suggest this could shift the narrative around "altcoin" utility—just as institutional interest in blockchain interoperability grows.

Meanwhile, Bitcoin loyalists continue dismissing all competitors as ’shitcoins’—because nothing says ’decentralized ethos’ like a single-asset dogma.

TLDR

• Ripple lawyer Bill Morgan stated that the argument about XRP lacking legal clarity is fundamentally flawed.
• He explained that courts resolve legal issues rather than assigning classifications to digital assets.
• Judge Torres ruled that retail sales of XRP do not constitute investment contracts under securities law.
• The court decision provided legal clarity for XRP without needing it to be formally labeled as a security or commodity.
• Morgan highlighted that the idea of classification itself is undefined and varies across legal jurisdictions.

Ripple lawyer Bill Morgan has dismissed claims from Bitcoin supporters that XRP lacks legal clarity due to its classification status. He addressed the argument by emphasizing that XRP’s legal standing is clear after Judge Torres’ recent ruling. The decision clarified that retail sales of XRP are not investment contracts, removing doubts over its legal status.

XRP Legal Status Confirmed by Court Ruling

Bill Morgan explained that the argument about XRP’s classification lacks a legal basis and misrepresents how courts operate. He noted that the court’s role is to decide legal disputes, not assign asset classifications. Therefore, the focus of the Ripple case was on the nature of XRP sales, not the asset’s category.

If we do not know exactly what XRP is we certainly have the legal clarity of what it is not: it is not a security. /12

— bill morgan (@Belisarius2020) June 3, 2025

He emphasized that Judge Torres resolved the key issue of whether XRP sales were investment contracts under existing securities law. As per her ruling, retail sales of XRP do not meet the definition of securities transactions. However, she did find that institutional sales involved investment contracts, offering partial regulatory guidance.

This ruling means XRP has legal clarity despite not being labeled a security or commodity. Morgan argued that courts aim to address facts, not offer general labels for assets. Consequently, XRP’s legal clarity stems from the court’s specific interpretation, not from external classifications.

Bitcoin Supporters’ Claims Dismissed

Bitcoin maxis have argued that XRP lacks legal clarity since it has not been formally classified like Bitcoin. They say bitcoin is recognized as a commodity by both the SEC and the CFTC, which gives it clearer status. However, Morgan pointed out that this comparison ignores the legal approach taken by the courts in the Ripple case.

He clarified that the absence of a defined classification does not mean a lack of legal clarity. According to him, classification is not a fixed concept and varies across jurisdictions. For example, Australian authorities recognize Bitcoin as property, further illustrating that classification is not uniform.

Thus, Morgan stated that Bitcoin Maxi’s argument contains a logical flaw. He underlined that knowing XRP is not a security provides sufficient legal clarity. Judge Torres’s decision provided the needed guidance, setting a judicial precedent for future references.

Ripple Lawyers Advocate for Regulatory Clarity

Ripple’s legal team welcomed the Digital Asset Market Clarity Act, passed last week in the United States. Ripple Chief Legal Officer Stuart Alderoty supported the legislation, stating it enhances the regulatory landscape for digital assets. He emphasized the need for clear frameworks across all crypto assets.

Morgan agreed, adding that regulatory clarity should come from legal outcomes, not assumptions or political statements. He reiterated that the court’s findings about XRP provided clarity through a structured legal process that established the non-security nature of retail XRP sales.

In a gesture of goodwill, Ripple co-founder Brad Garlinghouse donated the ‘Skull of Satoshi’ to the Bitcoin community. This symbolic MOVE aimed to ease tensions between the XRP and Bitcoin supporters.