The post Ripple Lawyer Explains Why XRP Promotion Was Risky During the SEC Case appeared first on Coinpedia Fintech News
A draft provision in the U.S. Clarity Act states that any token serving as the primary asset of a U.S.-listed ETF as of January 1, 2026 will not be treated as a security under the 1933 Act. XRP qualifies.
This matters because Ripple has spent years avoiding any public promotion of XRP. The reason was simple: saying too much could have handed the SEC a stronger case.
Ripple lawyer Bill Morgan broke down the situation on X.
“Ripple could not promote XRP or the XRPL for fear of being sued by the SEC for promoting and offering for sale an unregistered security. Even then it was sued,” Morgan wrote.
Ripple Knew the Risk Early
Morgan says Ripple saw the regulatory threat coming as far back as 2013. When the SEC launched its investigation in early 2018, the company stopped talking about XRP almost entirely.
Between 2018 and 2020, Ripple went quiet while Bitcoin and Ethereum got all the attention. Morgan pointed out that a senior SEC official, Bill Hinman, openly backed Ethereum during this period. Michael Saylor was free to push Bitcoin nonstop.
Ripple had no such option. Even after the lawsuit, the company has only promoted XRP indirectly through acquisitions and its RLUSD stablecoin.
Not Everyone Blames the Lawsuit
Wietse Wind, a major XRPL developer behind Hooks and Xahau, sees it differently. He said the timing problems with XRPL started before the SEC case.
“While the lawsuit may have hurt business/chain deployment opportunities, I think what Ripple/XRPL gained is brand awareness,” Wind wrote.
Morgan disagreed. He argued that even features built before the lawsuit could not be promoted because any marketing would have made the SEC’s argument stronger.
Also Read: JUST IN: Ripple Wins UK FCA Registration as Crypto Rules Tighten
What the Clarity Act Changes
If this provision passes, XRP gets a legal status that Ripple could never secure in court. The token would no longer fall under securities law.
For Ripple, that opens doors that have been shut since 2018.
