Ripple’s Fight with SEC Faces New Twist as Trump Promotes Meme Coin

As President-elect Donald Trump prepares to take office as the 47th President of the United States on Monday, he made a surprising move by launching his own cryptocurrency, $TRUMP coin. Despite his previous hesitations regarding cryptocurrency, Trump had expressed his belief that once he returned to Washington, America would become “the crypto capital of the planet.”

The timing of the launch raised some eyebrows. Critics have accused Trump of using his impending presidency to profit from the popularity of cryptocurrencies, particularly meme coins. However, some experts are focusing on how this decision could impact ongoing legal battles in crypto, particularly the high-profile lawsuit between Ripple Labs and the U.S. Securities and Exchange Commission (SEC). United.

Ripple Lawsuit: Could Trump’s $TRUMP Coin Affect the Case?

Attorney Bill Morgan recently discussed the implications of Trump’s actions on the Ripple lawsuit. Morgan pointed out that the appeal of Judge Torres’ finding against Ripple’s fair notice defense now looks more promising. As a reminder, the SEC filed a lawsuit against Ripple, claiming that the company’s sale of XRP violated securities laws. However, Ripple argues that it was not made clear that its XRP sales were subject to SEC registration requirements.

Morgan drew attention to Trump’s position on the issue of cryptocurrencies and investment contracts. Although Trump issued and promoted the $TRUMP meme coin, he does not believe these tokens should be classified as investment contracts requiring registration with the SEC. This is a key issue in the Ripple lawsuit, in which the SEC argues that XRP should be treated as a security, while Ripple maintains that it is a digital asset.

Given that Trump issued a speculative coin without adhering to the traditional regulatory frameworks that the SEC applies to other tokens, Morgan questioned how the SEC v. Ripple case could proceed under these circumstances. He said Ripple’s sales of XRP, like the promotion of $TRUMP, did not involve any post-sale obligations, which is a point of contention in the Ripple case.