Lawyer on Ruling of SEC v Ripple Case
Lawyer Bryan Jacoutot analyzed the SEC v. Ripple case and shared his thoughts on Twitter. He believes the court’s ruling is weak and expects an appeal. The court found that Ripple’s sale of XRP to institutional investors was an unlawful security sale. This means Ripple may have to return the funds and pay penalties. However, the court also ruled that XRP sold to random people did not constitute a security. Jacoutot disagrees with this reasoning and thinks buyers expected profit based on Ripple’s efforts. He also warns that the ruling does not clear the path for Ethereum, as there are important distinctions in their sales methods. Overall, he believes the judge got the law wrong and many projects, including Ethereum, are still exposed to securities questions.
Key Points:
- The court ruled that Ripple’s sale of XRP to institutional investors was unlawful.
- XRP sold to random people was not considered a security.
- Jacoutot disagrees with the court’s reasoning and thinks buyers expected profit from Ripple’s efforts.
- The ruling does not clear the path for Ethereum, as there are distinctions in their sales methods.
- Many projects, including Ethereum, are still exposed to securities questions.
Implication of XRP Ruling for Ethereum
Jacoutot cautions that the SEC v. Ripple ruling does not necessarily apply to Ethereum. He points out the differences in sales methods between the two projects. The court found that buyers of XRP didn’t know if it came from Ripple, but Jacoutot argues that this doesn’t matter under Howey. He also highlights that the ETH purchased during the pre-sale had a lockup period, which supports the argument that it was bought as a security. Despite the win for Ripple and XRP, Jacoutot believes it may be short-lived and that the judge made a mistake in her interpretation of the law.
Key Points:
- The SEC v. Ripple ruling does not clear the path for Ethereum.
- Differences in sales methods between Ripple and Ethereum are significant.
- The court’s reasoning on buyers not knowing the source of XRP is disputed.
- The lockup period for ETH purchased during the pre-sale supports the argument that it was a security.
- Jacoutot believes the judge made a mistake and many projects, including Ethereum, are still at risk.
Hot Take: While Ripple and XRP supporters may celebrate the ruling, the lawyer warns that it may not be a long-lasting victory. He believes the court’s reasoning is flawed and that other projects, including Ethereum, are still exposed to securities issues. The SEC v. Ripple ruling does not provide a clear precedent for Ethereum’s situation.
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