A new round of controversy has erupted on X after prominent crypto lawyer Bill Morgan called out what he described as ongoing misinformation surrounding XRP’s legal status in the United States. His remarks came in direct response to a post by DrCuadrado, who claimed that XRP remains classified under the Securities and Exchange Commission (SEC)—a statement Morgan swiftly refuted as false and outdated.
The Post That Sparked the Debate
DrCuadrado’s viral post grouped Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) under the Commodity Futures Trading Commission (CFTC), describing them as “commodities” and “foundational infrastructure for the digital economy.” He argued that this classification distinguishes them from assets such as XRP, Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE), which he claimed fall under the SEC’s jurisdiction. According to DrCuadrado, this distinction is not minor; it defines the assets’ regulatory certainty and opens pathways for institutional adoption, ETFs, and even sovereign reserve use. However, this statement triggered immediate backlash from the XRP community, particularly from Morgan, who stressed that it misrepresents both legal precedent and the SEC’s current stance on XRP.
Does the lying about XRP ever stop. Even a court found XRP is not a security. Even the SEC now does not call XRP a security and arguably never did . https://t.co/YKoPlVZo8U
— bill morgan (@Belisarius2020) October 23, 2025
Bill Morgan Sets the Record Straight
Responding to DrCuadrado’s claim, Bill Morgan, an Australian attorney well known for his precise commentary on the Ripple vs. SEC case, criticized the continued spread of false narratives about XRP. He reminded followers that a U.S. federal court had already ruled in 2023 that XRP itself is not a security, a landmark decision that reshaped its legal and market perception.
In Judge Analisa Torres’ July 2023 ruling, the court concluded that Ripple’s programmatic (retail) sales of XRP did not meet the Howey Test, and therefore were not securities transactions. However, the court also found that Ripple’s institutional sales, worth about $728 million, did constitute unregistered securities offerings. This nuanced decision, Morgan emphasized, is frequently misunderstood or misrepresented online.
Where the SEC Now Stands
Following the 2023 decision, the SEC and Ripple entered a lengthy phase of penalties and settlement discussions. By August 2025, both parties withdrew their appeals, and the appellate court officially approved the withdrawals, effectively bringing the case to a close. Importantly, since that point, the SEC has not classified XRP as a security nor taken any new enforcement actions suggesting otherwise.
This context reinforces Morgan’s position: claims that XRP is still under the SEC’s purview are factually inaccurate. The court’s decision remains the most authoritative interpretation to date, and the SEC itself has refrained from labeling XRP a security in any subsequent filings or statements.
Why This Debate Still Matters
The classification of digital assets has far-reaching implications. Assets recognized as commodities enjoy broader institutional acceptance, clearer regulatory treatment, and easier integration into ETFs, banking custody, and sovereign investment frameworks. Misrepresenting XRP’s status, therefore, doesn’t just distort public understanding — it could influence investor sentiment, exchange listings, and even international regulatory perspectives.
Bill Morgan’s frustration reflects a broader problem in crypto discourse: the persistence of outdated or misleading claims long after court rulings have clarified the facts. His post serves as a reminder that while XRP’s legal journey has been complex, the narrative that it remains a security is no longer supported by any current legal or regulatory authority.
In conclusion, Bill Morgan’s pushback underscores the importance of factual precision in crypto reporting and commentary. The Ripple vs. SEC saga may have created lasting divisions within the industry, but the legal clarity achieved since 2023 stands firm: XRP itself is not a security.
As misinformation continues to circulate, Morgan’s call for honesty and accuracy serves as a necessary reminder that, in the world of digital assets, facts matter more than headlines.