Ripple CTO Questions Baseball Cards and Art as Securities
Paul Grewal, Coinbase’s Chief Legal Officer, ignited a debate when he stated that “baseball cards would be securities under the arguments made by the current leadership of the SEC.” This remark prompted discussions on social media, with one participant referring to a 2017 comment from an SEC staffer who questioned why baseball cards weren’t considered securities.
David Schwartz, Ripple’s CTO, challenged traditional beliefs by arguing that the value of baseball cards, like other collectibles, is influenced by promoters and scarcity. He raised the question of whether the value of existing cards would decrease if more were produced and emphasized the role of promoters in determining scarcity and collectible status.
Schwartz extended his critique to art, questioning the notion that paintings and early works are exempt from speculative investment. He argued that purchasing art early in an artist’s career is a form of speculation on potential future value through promotions and future works.
These comments are significant as Ripple and XRP have been under SEC scrutiny for over three years. Unlike some in the crypto community who oppose the regulator categorically, Schwartz objectively acknowledged reasons why assets like baseball cards and art could be regulated as securities.
Hot Take: A Fresh Perspective on a Complex Issue
The ongoing debate regarding the classification of assets like baseball cards and art as securities continues to unfold. It remains to be seen how regulators will ultimately classify these items. However, David Schwartz’s insights provide a new perspective on this complex issue that will undoubtedly shape the future of cryptocurrency and related industries.
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