The launch of the TRUMP token on Friday has sparked debate in the crypto community, with some Ripple supporters suggesting it could influence the ongoing legal battle between Ripple Labs and the SEC. The token, which surged in popularity, with its market cap surging past $3 billion in hours, has raised questions about the SEC’s stance on cryptocurrencies like XRP, especially since it lacks typical securities regulations. Notably, some Ripple advocates now argue that if President Trump can promote a token without SEC oversight, XRP should not be classified as a security, especially since XRP’s sales did not involve post-sale obligations. In a tweet on Sunday, popular crypto lawyer Bill Morgan weighed in, arguing that if President Trump can launch the TRUMP token without SEC registration, XRP should be treated the same way. “The Ripple appeal of Judge Torres’ ruling against the notion that there must be a contract or post-sale obligations is also looking favorable.” Morgan noted . “After all, the President of the United States believes a token with no post-sale obligations can be issued and promoted without SEC registration.” Pro-Ripple lawyer Metalawman echoed Morgan’s sentiments, adding, “At this point, I don’t see any upside for Trump, or for the SEC, in continuing the misbegotten case against Ripple.” These statements follow the SEC’s opening brief earlier this week in its appeal to overturn a ruling that XRP is not a security when sold to retail investors. Additionally, there has been growing speculation that many of the SEC’s ongoing crypto lawsuits could be dropped under President Trump’s leadership. “ As expected, the SEC’s appeal brief is a rehash of already failed arguments –and likely to be abandoned by the next administration, “Stuart Alderoty, Ripple’s Chief Legal Officer, stated on Thursday, following SEC’s opening brief in the appeal. Meanwhile, XRP has experienced a notable 30% increase in value over the past week despite broader declines in the cryptocurrency market. The rally follows a recent meeting between Ripple CEO Brad Garlinghouse, Chief Legal Officer Stuart Alderoty, and President-elect Donald Trump on January 8. The meeting has fueled optimism around the project, with analysts speculating that Trump’s influence could help accelerate crypto adoption in the U.S. That said, as Ripple looks to the future, additional developments, such as the potential launch of an XRP exchange-traded fund (ETF) later this year and recent regulatory approvals like Ripple’s RLUSD stablecoin, are further fueling investor confidence and helping XRP outperform other major cryptocurrencies.
