Ripple notches win in SEC case over XRP cryptocurrency
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Re: Ripple notches win in SEC case over XRP cryptocurrency
#2This is supposed to be pretty huge. Besides coinbase and others relisting XRP what changes should we expect to see in the short term?
Re: Ripple notches win in SEC case over XRP cryptocurrency
#3"partial" win!? It's hard to see what would be a "win" otherwise... It's going to have also larger implications - the SEC somehow manages to lose that one, it was hard to imagine or predict. If not even XRP is a security, there is truly no other coins which could be a security. Hate it or love it, but the SEC is simply going to lose all their other lawsuits
EDIT: oh funny ... Reuters edited their title and removed "partial" :-)
Re: Ripple notches win in SEC case over XRP cryptocurrency
#4This is supposed to be pretty huge. Besides coinbase and others relisting XRP what changes should we expect to see in the short term?
>>[...] what changes should we expect to see in the short term?
The article mentions that since the company definitively sold unregistered securities to hedge funds and sophisticated buyers (without registering with the SEC), a jury will now/soon need to "decide whether or not Garlinghouse or Larson aided in the company's violation of the law."
Seems pretty clear cut that the company, and it's executives, will have further problems to tackle in the near future.
>>This is supposed to be pretty huge.
This could become much bigger if the SEC uses this enforcement as an example reference case for future actions against other token projects that followed a similar playbook over the past several years, assuming the case is kicked further up the court hierarchy on appeal.
Re: Ripple notches win in SEC case over XRP cryptocurrency
#5"partial" win!? It's hard to see what would be a "win" otherwise... It's going to have also larger implications - the SEC somehow manages to lose that one, it was hard to imagine or predict. If not even XRP is a security, there is truly no other coins which could be a security. Hate it or love it, but the SEC is simply going to lose all their other lawsuits EDIT: oh funny ... Reuters edited their title and removed "p…
Only appellate courts and higher set precedent. This is one ruling by one judge, means nothing for other cases.
Re: Ripple notches win in SEC case over XRP cryptocurrency
#6> But Torres ruled Ripple's XRP sales on public cryptocurrency exchanges were not offers of securities under the law, because purchasers did not have a reasonable expectation of profit tied to Ripple's efforts.
> Those sales were "blind bid/ask transactions," she said, where the buyers "could not have known if their payments of money went to Ripple, or any other seller of XRP."
I bet this gets overturned on appeal. It makes no sense to me. Seems like a huge loophole if it stands. Maybe it's explained better in the actual ruling, anyone have a link? Of course you can count on Reuters to never link to important information.
Re: Ripple notches win in SEC case over XRP cryptocurrency
#7> But Torres ruled Ripple's XRP sales on public cryptocurrency exchanges were not offers of securities under the law, because purchasers did not have a reasonable expectation of profit tied to Ripple's efforts. > Those sales were "blind bid/ask transactions," she said, where the buyers "could not have known if their payments of money went to Ripple, or any other seller of XRP." I bet this gets overturned on appeal. I…
>>Maybe it's explained better in the actual ruling, anyone have a link?
The docket[1] has the ruling[2], but there's very little additional detail provided beyond the focus on "blind transactions" to invalidate one of the Howey prongs[3].
As an aside, thank goodness for Court Listener and the RECAP/PACER archive!
[1] https://www.courtlistener.com/docket/19857399/securities-and...
[2] https://www.courtlistener.com/docket/19857399/874/securities...
[3] https://www.sec.gov/corpfin/framework-investment-contract-an...
Re: Ripple notches win in SEC case over XRP cryptocurrency
#8> But Torres ruled Ripple's XRP sales on public cryptocurrency exchanges were not offers of securities under the law, because purchasers did not have a reasonable expectation of profit tied to Ripple's efforts. > Those sales were "blind bid/ask transactions," she said, where the buyers "could not have known if their payments of money went to Ripple, or any other seller of XRP." I bet this gets overturned on appeal. I…
Not really, unless XRP is a share of a company (it's not) and promises dividends (it doesn't), there's no expectation of profit by purchasers of XRP.
Profits from speculation is not the same as profits from business activities. People purchase everything from bar codes (yes, 11 digit bar codes are a commodity with limited supply), to trailers, to collectible video games, to oil and minerals, precious metals, art, antiques, etc etc all on speculation that they'll be worth more in the future.
Re: Ripple notches win in SEC case over XRP cryptocurrency
#9This is supposed to be pretty huge. Besides coinbase and others relisting XRP what changes should we expect to see in the short term?
>> [...] what changes should we expect to see in the short term? The article mentions that since the company definitively sold unregistered securities to hedge funds and sophisticated buyers (without registering with the SEC), a jury will now/soon need to "decide whether or not Garlinghouse or Larson aided in the company's violation of the law." Seems pretty clear cut that the company, and it's executives, will have…
This part I don't understand, aren't those institutions "accredited investors"?
Re: Ripple notches win in SEC case over XRP cryptocurrency
#10This is supposed to be pretty huge. Besides coinbase and others relisting XRP what changes should we expect to see in the short term?
>> [...] what changes should we expect to see in the short term? The article mentions that since the company definitively sold unregistered securities to hedge funds and sophisticated buyers (without registering with the SEC), a jury will now/soon need to "decide whether or not Garlinghouse or Larson aided in the company's violation of the law." Seems pretty clear cut that the company, and it's executives, will have…
> This could become much bigger if the SEC uses this enforcement as an example reference case for future actions against other token projects that followed a similar playbook over the past several years
There is no other project, not even a close one, who sold tokens worth almost $1b rewarding their execs, while offering no value whatsoever.
This is not a win for the SEC, this is the case they truly couldn't lose. Yes, they didn't lose everything but that was also not possible to begin with