SEC Attorney Weighs In on Health Industry Embracing Crypto as Wellgistics Health Bets on XRP
There has been a growing trend of embracing cryptocurrencies within the health sector that has attracted regulatory attention, and former SEC attorney Marc Fagel weighed in forcefully.
His observation came after the latest news that Nasdaq-listed pharmaceutical company Wellgistics Health has adopted XRP and integrated it with the XRP Ledger (XRPL).
Fagel, who has over 30 years of experience investigating securities fraud, expressed skepticism.
His skepticism stemmed from the rationale behind a health startup with limited revenue and assets that was accumulating a significant crypto stockpile.
He made clear that such moves warrant scrutiny, particularly given the high-risk nature of crypto investments.
Wellgistics Health’s XRP Move Sparks Industry Debate
Wellgistics Health’s adoption of XRP has sparked a polarizing debate among regulators and crypto enthusiasts.
Marc Fagel observed that the firm’s weak finances, with modest sales and ongoing net losses, raise serious questions about why it would use money on a speculative asset like XRP.
He questioned how a failing firm that cannot generate revenue can possibly justify using its scarce resources for such speculative purposes.
The comments of the ex-SEC official came in direct response to a tweet from prominent XRP enthusiast and attorney Bill Morgan, who had welcomed Wellgistics’ move as an expression of “real business utility” for the XRPL.
Morgan suggested the move might be a strategic ploy to generate investor attention and capital in a constrained funding environment.
Also Read: Nasdaq Seeks SEC Permission to Add XRP, SOL, XLM, ADA to Crypto Index
XRP Integration Seen as Part of Broader Treasury Strategy
The defense of those supporting Wellgistics’ action is that the inclusion of cryptocurrency in corporate treasury practices is becoming a common trend.
Bill Morgan further said that Wellgistics Health may be following a broader pattern in which corporations are using cryptocurrencies like XRP not only for transactional value but as a novel form of art of treasury diversification and fundraising.
The trend is not exclusive to Wellgistics; Nature’s Miracle, a technology company specializing in vertical agriculture, recently announced that it would invest a maximum of $20 billion in XRP as part of its treasury policy.
The news suggests a growing acceptance of XRP and other cryptocurrency assets as legitimate financial instruments in certain sectors, including healthcare and agritech.
Also Read: Chinese AI Firm Webus to Establish XRP Reserve with $300M Funding Plan
Health Sector Finds Place for Crypto
In addition to Wellgistics, numerous other healthcare firms have been making headlines for their significant crypto investments.
One of the earliest health science companies to establish a Bitcoin treasury was Prenetics Global Limited, which invested $20 million to purchase 187.42 BTC at an average price of $106,712 per coin.
The holdings are reportedly stored in a locked Kraken custody account.
Meanwhile, Kindly MD, another Nasdaq-listed healthcare company, has just disclosed the purchase of 21 BTC, valued at approximately $2.3 million, as a beginning point for crypto adoption.
The company further hinted at expanding its digital asset book in the not-too-distant future.
Also Read: Ondo Finance’s Tokenized Treasury Product OUSG Now Live on XRPL, Powered by Ripple’s RLUSD