Attorney Jeremy Hogan Challenges SEC Registration for XRP and SOL Sales
Jeremy Hogan, a prominent attorney known for his support of cryptocurrencies like XRP, recently sparked a discussion on social media. He argued that authorized sales of digital currencies such as XRP and SOL might not need to be registered with the SEC, despite the agency’s classification of them as securities.
Exploring FTX’s Legal Position
Marc Fagel, an expert in securities law and former SEC official, delved into the intricacies of the matter. According to him, FTX, as a facilitator rather than an issuer of these tokens, could potentially be exempt from SEC registration. However, he cautioned that if FTX were to sell its native tokens, it could face legal challenges.
FTX is not the issuer, and thus it would presumably be exempt from registration regardless. (Perhaps a different issue of the forced sale includes FTX’s FTT token.)
— Marc Fagel (@Marc_Fagel) September 14, 2023
The Debate Over Token Classification
The discussion continued with The Digital Dodo, an analyst who raised an intriguing question about whether a token classified as a security should be subject to mandatory registration. The key consideration was the traceability of a token’s origin, whether it came from an exempt sale or the initial issuer. The perception that cryptocurrencies enable illegal activities due to their untraceability added another layer to the debate.
Fagel responded by clarifying that subsequent sales, like the initial one, would likely be exempt from registration. The real challenge, he noted, lies in determining whether a specific token necessitates an exchange to be registered. This issue may be clarified through upcoming legal decisions involving platforms like Coinbase and Binance.
Hot Take: The Ongoing Debate Surrounding Crypto Regulations
The question of whether certain authorized sales of digital currencies should be registered with the SEC continues to generate heated discussions among legal experts and cryptocurrency enthusiasts. While attorney Jeremy Hogan argues for exemption, Marc Fagel highlights the potential complexities that could arise for platforms like FTX if they decide to sell their native tokens. The debate also touches on the traceability of token origins and the role of exchanges in registration requirements. As regulatory frameworks evolve, forthcoming decisions in cases involving major platforms will likely shed light on the future of cryptocurrency regulations.
By
By
By
By