Lack of Clarity: SEC’s Delayed Assessment of DASH and XRP Raises Concerns

• Bitcoin Morgan, a renowned legal figure and XRP proponent, exposes the SEC’s dilatory and indecisive regulatory approach towards cryptocurrencies.
• Morgan comments on the unexpected revelation in Bittrex’s latest filing that SEC regards DASH as a potential security, a stance disclosed almost a decade post-DASH’s inception.

Bill Morgan, a recognized legal authority and enthusiast of Ripple’s XRP, has voiced his criticism once again regarding the U.S. Securities and Exchange Commission’s (SEC) strategy for digital asset regulation. In a recent tweet, Morgan elucidated the prolonged state of ambiguity induced by the SEC’s failure to offer clear regulatory guidelines concerning cryptocurrencies, specifically focusing on DASH and XRP.

Protracted Regulatory Ambiguity

This follows recent revelations in Bittrex’s filing where the SEC publicly announced for the first time that DASH could be classified as a security. This declaration comes almost ten years after the cryptocurrency’s launch, generating more uncertainty in the already nebulous regulatory landscape.

Morgan pointed out that the SEC pursued legal action against Ripple eight years after it started selling XRP. He vehemently reproaches the SEC’s approach, stating that this method is counterproductive to achieving any form of regulatory lucidity.

Earlier this year, the SEC initiated legal proceedings against Bittrex and its co-founder, William Shihara, accusing them of operating an unregistered securities exchange, broker, and clearing agency. The SEC alleged that Bittrex has projected itself as a platform facilitating the buying and trading of crypto assets allegedly sold as securities since at least 2014.

Sudden Allegations Stir Unrest

Morgan critiqued this situation, drawing upon a scenario where an investor who purchased DASH in 2014, only becomes aware in 2023, that the SEC claims DASH is a security. This revelation is based on a complaint

“filed against a foreign company operating a foreign exchange where DASH is sold to foreign customers.”

He further adds,

“Nine years of uncertainty, then suddenly DASH is alleged by the SEC to be a security. And this after there was no indication that Proof-of-Work tokens, which are mined, were securities.”

The SEC’s indirect approach to regulation has received widespread criticism for avoiding clear regulatory rules, which many believe are essential to create an environment conducive to responsible innovation.

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