In a recent tweet, David Schwartz, the Chief Technology Officer of Ripple, asked crypto enthusiasts what aspects of crypto he should educate the community more about.
What should I tweet about more?
— David "JoelKatz" Schwartz (@JoelKatz) August 12, 2023
The XRP community suggested diverse topics for which they needed more clarification. The suggestions included the intersection of Ripple and XRP use case, likewise the status of Ripple’s On Demand Liquidity product.
Meanwhile, Bill Morgan, a prominent lawyer known for his pro-XRP stance, asked a crucial question about Ripple’s business operations.
Why Ripple Yet to Add XRP in Liquidity Hub?
Morgan asked Schwartz why the firm could not include XRP among the supported digital assets in its liquidity hub. The lawyer believes now, more than ever, XRP deserves to be on the list, given its clear regulatory status.
“The reason Ripple can’t add XRP to the liquidity hub now is that the court found XRP itself is not a security,” Morgan inquired.
The reason Ripple can’t add XRP to liquidity hub now that the court found XRP itself is not a security https://t.co/wzrQdGV6VU
— bill morgan (@Belisarius2020) August 13, 2023
Well-known XRP influencer, Mr. Huber, guessed the reason was that Ripple Liquidity Hub was tailored to cater to the needs of institutions.
Notably, Ripple’s blog stated that the liquidity hub eases buying and selling digital assets for US, Australian, and Brazilian businesses. Nonetheless, the reason for the exclusion of XRP still begs an answer, as XRP is also a digital asset.
In the conversation thread, Morgan noted that Ripple’s exclusion of XRP for businesses in the United States is understandable. However, he contended why Ripple is not offering XRP in the liquidity hub for non-US institutions like Australia and Brazil.
“Aren’t the liquidity pools sourced in part at least through XRP on exchanges, not direct sales,” he inquired.
Furthermore, the lawyer argued XRP holds a better regulatory status than coins such as Bitcoin (BTC), Litcoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH), supported on Ripple Liquidity Hub.
If that is so, why can’t Liquidity Hub use XRP in Australia or Brazil, where it is available, with Non-US institutions, and aren’t the liquidity pools sourced in part at least through XRP on exchanges not direct sales? XRP surely has more legal certainty now than these coins ? https://t.co/bgUITWHEpM pic.twitter.com/2Bc2etnG9o
— bill morgan (@Belisarius2020) August 13, 2023
Meanwhile, the conversation shifted gears when a Twitter user asked about the difference between Ripple offering XRP to institutions and the hub’s supported cryptocurrencies. Moreover, the US court ruled that Ripple’s XRP sale to institutions is a security contract.
In response, Morgan highlighted that it was unlikely that the institutions Ripple offered BTC, ETH, and LTC expected any profit from Ripple’s efforts.
Notably, at press time, Ripple CTO is yet to respond to why XRP is not among the supported digital assets on Ripple Liquidity Hub.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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