Lawyer Explains Why XRP Token Buybacks Differ From Stock Buybacks

CoinNetwork · 2026-03-16T18:07:11+00:00

Ripple recently repurchased shares worth $750 million, sparking debate about whether it should support the XRP price. Lawyers have pointed out flaws in token buybacks, arguing that purchasing XRP through institutional channels could be more effective. Meanwhile, critics contend that Ripple's structure creates conflicts of interest between shareholders and token holders, while supporters argue that a cautious approach is justified given legal risks.

CoinNetwork

2026-03-16 18:07:11

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Ripple recently spent $750 million to buy back shares, sparking a debate about whether the company should directly support the XRP price. Lawyer Bill Morgan believes that token buybacks have flaws because Ripple does not control a decentralized XRP ledger like a company with shares does. He pointed out that institutional investors like Evernorth boost demand by purchasing XRP and using it for yield products, which might be a more preferable strategy. Critics, such as Zach Lains, argue that Ripple’s structure creates conflicts of interest between equity shareholders and token holders, and that directly buying XRP could be more beneficial for token holders. Ripple’s supporters note that the company’s cautious approach is due to legal risk considerations, as past actions to support the XRP price have been mentioned by the U.S. Securities and Exchange Commission (SEC) in its securities case.

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