SEC’s DASH and XRP Security Status: Pro-Ripple Lawyer Points to Uncertainty

Pro-Ripple lawyer raises concerns, saying the SEC questions the security status of DASH and XRP. In the cryptocurrency industry, regulatory clarity is a hot topic. The lawyer’s statement adds fuel to the fire.

SEC Controversy: XRP Advocate Condemns, DASH Security Exposed

Bill Morgan, a legal expert, and XRP fan, has retaken to Twitter to complain about the SEC’s handling of digital assets. Due to the SEC’s lack of clear guidelines for cryptocurrencies like DASH and XRP, Morgan says there’s been a long period of uncertainty.

According to Bittrex’s recent filing, the SEC has publicly stated that DASH could be classified as a security after almost ten years. SEC’s perspective on the matter has changed significantly due to this revelation. 

Morgan said Ripple had a lawsuit eight years after selling XRP, which he found concerning. In his opinion, the SEC’s approach is too slow, which hinders regulatory clarity. In addition, Bittrex and its co-founder, William Shihara, filed motions over the weekend to dismiss the SEC’s complaint.

SEC Lawsuit: Bittrex Allegations, Dash Controversy, and XRP Advocate’s Concerns

A lawsuit was filed by the SEC against Bittrex and its co-founder, William Shihara, in April. According to the lawsuit, Bittrex operated as an unregistered securities exchange, broker, and clearing agency.

The allegations say Bittrex marketed itself as a place to buy and trade crypto assets, some of which were allegedly sold as securities starting in 2014. An SEC complaint is dismissed by Bittrex because:

DASH, OMG, and ALGO were launched in 2014, 2017, and 2019, respectively. None were registered as securities by their founders or promoters, and in the years following their launch, the SEC did not publicly express the view that any of these were securities. The first time the SEC publicly expressed this view was nearly a decade after DASH launched when it filed this lawsuit against Bittrex Global.

In response, Morgan offered a hypothetical scenario in which someone who bought Dash tokens in 2014 realizes, in 2023, that Dash is security. Morgan tweeted about a complaint “filed against a foreign exchange that sells Dash to foreign customers.” In another tweet, he said, 

It’s no way to achieve clarity. 9 years of uncertainty then suddenly Dash is alleged by the SEC to be a security. And this after there was no indication that PoW tokens which are mined were securities.Ripple sued after 8 years selling XRP. What a shit show the US is dishing up. https://t.co/qp9fB8fdhB

— bill morgan (@Belisarius2020) July 3, 2023

After 9 years of uncertainty, the SEC suddenly alleges Dash to be a security. This is surprising because there were no indications that Proof-of-Work tokens, which are mined, were considered securities.

Indirect regulation by the SEC is widely criticized since it doesn’t provide clear guidelines, which people think are necessary to encourage responsible innovation.

Lack of clarity can lead to companies misinterpreting rules or taking too much risk, ultimately leading to financial losses. Investors becoming wary of potential financial pitfalls can lead to a lack of trust. It can stifle innovation and make businesses more risk-averse.

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