A crypto trader stirred the pot on X this week with a harsh take on XRP. In the tweet, they claimed that XRP lacks legal clarity, isn’t backed by any major institutions, doesn’t compete with SWIFT, has zero CBDCs running on its ledger, and is nowhere near Bitcoin in terms of legitimacy – since only BTC is held in U.S. reserves.
The post ended with a simple jab: “Facts are important.”
But that didn’t sit well with Bill Morgan, a lawyer known for his support of Ripple and the XRP community. He pushed back hard, saying that calling XRP legally unclear is flat-out false. He reminded everyone that a U.S. judge has already ruled XRP itself is not a security – and the SEC didn’t appeal that part of the ruling.
Morgan wrote that claiming XRP lacks legal clarity is, in his words, “the biggest lie I have seen in crypto this year.”
He’s referring to the 2023 ruling in the Ripple vs. SEC case, where Judge Torres said XRP sales to retail investors aren’t securities. Even though the legal battle isn’t fully over yet, that particular decision gave XRP a huge win – and it still stands.
This is a lie. XRP has been found by a judge not itself to be a security. The SEC Appeal did not challenge that finding. To say XRP has no legal clarity is the biggest lie I have seen in crypto this year. https://t.co/6x1AycUxja
— bill morgan (@Belisarius2020) June 1, 2025
So on the legal clarity point, Morgan’s absolutely right. In fact, XRP is one of the very few top-30 coins with a ruling like that behind it. Most other altcoins are still waiting for their day in court – or hoping they never get one.
Now, on the rest of the tweet, things get more nuanced.
The claim that no major institutions back XRP isn’t totally accurate. While XRP might not have the kind of Wall Street headlines Ethereum or Bitcoin get, Ripple has partnered with dozens of payment companies and financial institutions, especially in Asia, Africa, and Latin America. The network’s footprint isn’t small – it’s just quieter than the hype coins.
The comparison to SWIFT is apples to oranges. XRP doesn’t do messaging like SWIFT does – but RippleNet does, and XRP is the asset used for liquidity in on-demand settlement. As for CBDCs, it’s technically true that none are fully live on XRPL right now. But Ripple has been actively involved in pilots, including in Bhutan and Palau. It’s a slow-moving sector, especially with central banks.
And the final shot – that only Bitcoin is in the U.S. reserve – is misleading. The U.S. government holds seized BTC from various investigations, but it’s not an official reserve asset. So that’s not exactly a “win” for Bitcoin either.
Bottom line?
The trader’s tweet may have gone viral, but it oversimplified or misrepresented a lot of what’s happening with XRP. Morgan’s reply brought some much-needed clarity – and a bit of heat.
Crypto debates like this are healthy, but it’s important to know the difference between facts, opinions, and old narratives that no longer apply.
Read also: XRP Price Doesn’t Need to Hit $10,000 to Change Your Life, Says Angel Investor
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