Bill Morgan, a vocal advocate for Ripple, argues that if XRP is used for payments within the Ripple ODL service, these transactions should not be considered investment contracts. The clients of ODL are not investors, but rather individuals seeking fast and cost-effective payment solutions.
Morgan referred to Judge Analisa Torres’ ruling, which categorized XRP sold to institutional investors as securities. However, Morgan believes this ruling does not extend to ODL transactions where large corporations employ XRP for cross-border payments rather than investments:
“It is irrefutable that ODL transactions occur within seconds, so clients availing this service cannot be viewed as investors. They purchase XRP solely for converting it into fiat currencies and conducting low-cost money transfers. Their goal is to reduce expenses, not to hold XRP for speculative gains.”
In a similar vein, John Deaton, another attorney representing cryptocurrency firms, previously contended that conducting international payments with XRP via Ripple ODL is entirely legal. According to Deaton, the US Securities and Exchange Commission (SEC) lacks authority over XRP sales conducted abroad.