Australian-based lawyer Bill Morgan explains why Ripple has not yet added XRP to Liquidity Hub’s list of supported assets despite the coin receiving legal clarity.
Australian-based lawyer Bill Morgan has taken to X (formerly Twitter) to explain why Ripple has not added XRP to the list of supported assets on Liquidity Hub despite the coin getting legal clarity.
It is worth noting that in April Ripple launched Liquidity Hub, a solution that helps businesses bridge the crypto-fiat gap. At its initial launch, the solution supported BTC, ETH, ETC, BCH, LTC, and the US Dollar.
Community Reacts as Ripple Continues to Ignore XRP
However, XRP did not make the product’s list of supported assets. Consequently, several community members speculated that Ripple did not add support for XRP due to the ongoing SEC v. Ripple lawsuit.
Notably, a federal court presiding over the case ruled in July that XRP itself is not a security. After the ruling, several enthusiasts expected Ripple to announce support for XRP immediately.
However, their expectations were not met, as Ripple recently added support for two stablecoins – USDC and USDT – instead.
As a result, some community members have expressed their frustration with Ripple for not adding XRP to Liquidity Hub’s list of supported assets even after the coin received legal clarity in the SEC lawsuit.
“And they said XRP wasn’t included because of legal BS… Well now it’s the only one with legal clarity and they still haven’t added it to the liquidity hub,” an enthusiast tweeted.
SEC Appeal Hindering XRP Addition to Ripple’s Liquidity Hub
Reacting, Attorney Morgan said although XRP has legal clarity, the issues surrounding Ripple’s use and sale of the crypto asset have not been resolved, given the SEC’s intent to appeal the court’s ruling.
XRP has clarity as not itself a security but Ripple's use or sales does not have final clarity given the SEC's intent to appeal. If Ripple uses XRP in LH can it or its customers be certain this will not attract SEC enforcement until the lawsuit & any appeal is finally resolved./1 https://t.co/fDrhDjEd1U
— bill morgan (@Belisarius2020) September 16, 2023
It bears mentioning that the SEC is seeking permission to file an immediate appeal to the court’s ruling on Ripple’s programmatic sales of XRP and other distributions.
The SEC is dissatisfied with the decision on both transactions, which the court found as non-securities. Hence, the SEC has requested to file an interlocutory appeal to challenge the ruling.
Furthermore, he noted that Ripple and its customers cannot guarantee whether using XRP in the Liquidity Hub product before the lawsuit is fully resolved could attract an SEC enforcement action.
Ripple Has No Obligation to XRP Holders
He added that the blockchain company is more concerned about the demands of its customers and shareholders than XRP holders.
“That is hardly surprising. As the XRP community was happy to accept when Ripple argued that there was no common enterprise between XRP holders and Ripple, there are no rights against Ripple from the purchase of an XRP token and Ripple has no legal obligations to XRP holders,” Attorney Morgan added.
Meanwhile, Attorney Morgan speculated that Ripple will add support for XRP in the near future.