Attorney Bill Morgan says SEC Regulation Crypto’s $75 million yearly cap does not fit Ripple’s $300 million monthly XRP escrow. The useful clause is the safe harbor if essential managerial efforts have ceased.
The SEC’s Regulation Crypto Assets proposal is not a Ripple ruling. It is a 60-day comment file. Attorney Bill Morgan, who tracks the Ripple case, says the dollar exemptions are the wrong clause for XRP. The useful one is the safe harbor.
Ripple is due in the White House room today. This note is the legal mechanism, not that meeting.
Coinpedia, citing Eleanor Terrett, repeats the two exemptions: up to $5 million over four years, or up to $75 million a year. Morgan’s point is arithmetic. Ripple releases about $300 million of XRP from escrow each month. That monthly figure alone sits above the yearly cap.
He also says Ripple already has a bad-actor waiver from last year, which lets it use the existing Rule 506 private-offering path for institutions. That is Morgan, not a Commission statement.
The exemptions are written for issuers who still need to raise. Ripple’s XRP problem is the old institutional sales, not a new $75 million book.
Morgan points at the conditional safe harbor, sometimes called Rule 400. To use it, an issuer certifies that the essential managerial efforts promised under the investment contract have permanently ceased. Chair Paul Atkins’s line is the same test: the harbor applies once the issuer has “permanently ceased all essential managerial efforts” it represented or promised.
If that certification holds, the token can leave investment-contract status. A court had applied that status to some of Ripple’s institutional sales. A permanent injunction against securities-law violations is still on that case. Morgan’s question is whether Ripple can formally close that door, not whether XRP is a commodity in the next trade.
He argues the company’s centre of gravity has moved to RLUSD and acquisitions over the past 18 months, and that Ripple has stayed quiet on new XRP-specific promises. That is his read. Ripple has not posted a comment on the proposal in the sources used here.
The file is SEC Posts Reg Crypto. Comments run 60 days after Federal Register publication. No close date is printed. Do not invent one.
Informational only. Not trading advice, signals, or a guarantee of any market outcome.
Written and fact-checked with AI assistance, reviewed by a human editor before publication.
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