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Hello this is Matt on the moon Lambo Channel an attorney within the xrp Community who has been covering the secv Ripple case literally for years and Providing all sorts of thoughtful Insight and perspective along the way Has issued a warning and I'll show you Exactly what he had to say uh but issued A warning that judge torres's decision About xrp specifically in the secv Ripple case as it pertains to Programmatic sales which is where Ripple Got a massive win that's the xrp Programmatic sales he's warning that That portion of the decision could be Successfully appealed by the SEC now why did this topic come up today Well it's as a result of this headline That's on your screen from coin Telegraph coinbase requests Interlocutory appeal over sec's Controlling question so I'll share with You exactly what that's about and what The risks may be uh for us if any as xrp Holders but before going any further I Do want to be clear I do not have a Financial background of any kind I am Not offering Financial advice and you Definitely should not buy or sell Anything because of anything I say or Right I'm just an Enthusiast who enjoys Making YouTube videos about crypto Related topics but just as a hobby and Just for fun so um rather than read the
Article let's just jump straight to the Meat of this I'm going to share with you What uh coinbase's Chief legal officer Had to say uh that's Paul greywall and Then I'm going to jump into what the uh Xrp Community member who was an attorney Had to say and that's attorney Bill Morgan and uh and it gets interesting so Check this out here's here's what Paul Greywell of greywall of coinbase uh Shared in the evening today coinbase Filed a brief asking the Court's Permission to seek an interlocutory Appeal in our SEC case on this Controlling question whether an Investment contract require something Contractual we think it does the SEC Disagrees now folks that uh is already Reminding me of uh Ripple's argument Which is kind of famous at this point Which is that you know how can you say There's an investment contract if they Literally isn't an a contract existing Right kind of familiar there right Anyway Paul continues we're asking to Take this up on appeal earlier than Normal because it's critical to our Industry the sec's action against us and Other digital asset companies goes Way Beyond the legal Authority granted by Congress and puts an unjust Cloud over Us digital asset Innovation the not at all funny thing is We're not alone in thinking the question
Of uh when a crypto transaction might be An investment contract warrants Interlocutory appeal the itself has made The identical arguments and this is why It's interesting check this out in the Ripple case they said specifically there Is quote controlling question of law to Which there are substantial grounds for Difference of opinion end quote and Noted quote industrywide significance End quote of the question presented it Goes without saying but I'll say it Anyway digital assets aren't going Anywhere and coinbase will continue to Push for clarity for the entire industry And the 52 million Americans who own Digital Assets in the meantime we're Business as usual we appreciate the Court's consideration of our request now Um Fox Business journalist elanar terret She was sharing this news just last Night and this caught the attention of Attorney Bill Morgan Bill Morgan Reposted Elanor turret's post which for The sake of time I'm not reading it I Just kind of let you know what's going On here that thread from Paul Greywell But um but post from Elanor terret was Reposted by attorney Bill Morgan and Then he started talking about the Implications of what this would mean for The very good ruling that uh that Ripple Had a b Victor here obviously that Ripple's programmatic sales of xrp were
Not investment contracts and here's what Attorney Bill Morgan had to say about This if coinbase is granted leave to File an interlocutory appeal and loses The appeal it may improve the sec's Chances of a successful Appeal on the Finding of Judge Torres that Programmatic sales of xrp are not Investment contracts although I believe Assertions about the inconsistency Between the respective reasoning of Judge raikov and Torres is greatly Exaggerated by many including your Colleague Charles Gasperino now at that point um somebody Named I think this is where I wanted to Jump in somebody named runas responded To uh to attorney Morgan and wrote The Elements in the Ripple case are Different from the Terra form case and The SEC has already failed to make an Interlocutory appeal why would the SEC Waste its time if it has already Achieved a victory in Institutional uh sorry an Institutional Sales and attorney Morgan did respond to Him and he Said uh most commentators believe the SEC will appeal on this issue and the Fact the SEC sought an inter loory Appeal shows the SEC believes there was An error and wishes to appeal yeah and So that seems uh like accurate obviously I mean frankly kind of obvious um I'm
Glad he said it because the SEC I'm sure That you'll recall uh they were seeking Interlocutory appeal and judge Torres smacked him down nice to see that But isn't that maybe a little little Hint that um they're going to actually Appeal this thing ultimately if it you Know when it's when it's all said and Well before it's all said and down done Technically um and so I um I wrote To uh attorney Morgan uh hold on let me See if I need to back up one second I Want to make sure I've got the correct Stuff highlighted Here yeah yeah this is what I wanted to Highlight next so I wrote to him to Attorney Morgan and I Said uh if the SEC appeals the decision On Ripple's programmatic sales it won't Matter to uh to typical xrp holders Because even if an appeal from this SEC Is a success it wouldn't change the Legal status of xrp or do you have a Concern for xrp holders that I haven't Considered and so upon reading this uh What attorney Morgan had to say I Thought yeah I mean it's totally Plausible he mean he from legal Perspective he knows better than me no Matter what hands down uh but um having Been following this case for years and Including the latest developments and What happened immediately after chores Came to her conclusions from what I had
Read from multiple attorneys what it Just seemed like even if There's successful appeal that uh it Wouldn't change the legal status of xrp Which frankly like bottom line for xrp Holders that's what matters right and so That's the reason that I was asking that To see if there's maybe something that I Hadn't considered because I'm not an Attorney I just play one on YouTube Right and U so attorney Morgan was kind Enough to respond and I'll share with You what he wrote he said to me the Following there are two separate points In your post number one an appeal won't Change the legal status of xrp number Two it won't matter to a typical xrp Holder both statements in my view need To be nuanced I agree with point one xrp Will continue itself to have legal Clarity provided another Court does not Reach a different conclusion on xrp a Ratio in another case perhaps in a Different circuit that xrp is a security Versus obiter of Torres J it is not Would dis disturb that clarity now That's a broken sentence there but I Think what he was trying to say is that You know if there's in a separate court Uh an opposing Viewpoint uh it would Disrupt the level of clarity I think That's what he's saying and plus that Would just make logical sense so I'm Assuming that's what he was trying to
Communicate he said quite unlikely but Remotely possible and so technically We've always known that's in the back Like in the back of our minds like okay Technically something crazy like that Could happen but the odds of that um you Know kind of low and then as far as the Um the other part and I didn't bring it Up here but the idea of the um judge Tor's uh Dicta stating that you know excerp Itself is not a security and the words That she used to communicate that Concept that's not something that can be Appealed and I remember first attorney Jeremy Hogan bringing that up in July of Last year because it's not something That was even being ruled on in the case That's why it's dictat it's not it's not Something that is appealable and then of Course on top of that the SEC also Ultimately recognized in a in a legal Document to judge Torres said uh yeah We're not going to appeal that portion Of the decision and I've highlighted That many times on this channel so That's good too uh but anyway turny Morgan continues further the tokens have No inherent value and the ecosystem is The common Enterprise positions of the SEC could have the effect that if Accepted generally by courts that the Token itself is not a security but any Sale of it is an investment contract not
Sure the SEC needs to go that far to Control crypto Point number two is more Debatable and I found this interesting Here's what he said a successful appeal Against Ripple further limiting it using Xrp for what remains xrp's main Developed use case may have a negative Impact on price which if it happens will Matter to a typical xrp holder Especially the escro dumping on retail To suppress xrp price adherence now um I Did have a apply um which I did publish It's it's it's on the weets right now on On social media platform X um it's just That um he hasn't reped to it as of the Time I'm recording this but I was Pointing out um that because again what He's articulating here is you know the Theory is you know if should xrp you Know should a typical xrp holder care About this well if the theory is that You know xrp's use case as a bridge Currency developed by Ripple actually Matters and then that's somehow hindered That can negatively impact price so set Aside the fact that you know I'm not Convinced that Ripple's business goings On have ever you know impacted the price Of xrp in any detectable way set that Aside um you xrp being used as a bridge Currency that comes from institutional Sales not programmatic sales and we're Talking about programmatic sales right Here and we're talking about that being
Appealed on the institutional side the SEC already won that portion of the uh Of the Case so and you know to be clear and I Don't want to go off on too many random Little tents here But it it seems very obvious that there Are workarounds for ripple so even for Ripple uh there should be a way that They could position xrp as a bridge Currency in corridors that touch the United States in corridors not touching The United States it's business as usual That doesn't change that's why this Decision doesn't ultimately matter um if It really came down to it they could use A different cryptocurrency for any uh Any coin that's you know touching the United States hell they're going to Launch a new stable coin who knows maybe They could use it for that if if they Really got that bad I'm not worried About it but but um so anyway I I was Questioning because um if he writes back Maybe I'll talk about if there's a Further discussion on this maybe I'll Cover it in a future video but I was Just trying to make sure I didn't Misunderstand him because that's always Possible too but given that we're Talking about programmatic sales here I Don't see how a decision on this would Um have anything to do with xrp being Positioned as a bridge currency and
Maybe again maybe I'm just Misunderstanding something though and uh And then on top of that again with xrp Having legal Clarity I just I further Just I I don't think so um there's also This post and I don't here actually I Can just refresh this one I don't know If you wrote back to this one you may Not have even seen it yeah there's a Separate post where I wrote to attorney Morgan and I said I remember Deon Talking about how judge Torres only Ruled on one prong of the Hoy test I Don't remember the exact the exact legal Process but my recollection is he said That if an appeal moves forward she Could just rule on the other prongs and Nothing changes do you have an opinion On that and so I'm just pulling from Memory here I thought I'd just throw it As a little add-on towards the end of The video here I do remember Deon Talking about this topic she Intentionally only ruled on one prong of The Hoy test so that if it's goes to a Higher court and then it's thrown back To her uh then she can just come to the Same conclusion by addressing the other Prongs of the hoe test and then we still Get the same Result so I think that's a thing anyway So this is not something I'm Particularly worried it's an interesting Topic for conversation
Um so I wanted to highlight that but um You know and what attorney Morgan here Is saying is is pretty pretty damn Reasonable Could Happen um but I just I I don't think that it's something that's Going to that it's you know really Remotely likely to harm the typical xrp Holder people like you and me I could be Wrong of course I'm just a dude on the Internet sharing some thoughts but uh This is not something I personally am Going to be losing sleepover um xrp is Legal Clarity and then even if this if Things were going to end up disastrously For xrp would take so many years and at Least we would have gotten through this Current bull market without that Happening right that's that's what I'm Looking at any I'll wrap up here though I'm not a financial adviser you should Not buy or sell anything because of Anything I say all right that would be a Very very very bad idea until next time To the Moon Lambo
