Retired Lawyer Offers Skeptical Insights on Ripple’s SEC Victory
Retired securities lawyer Marc Fargel expressed skepticism about the recent victory of Ripple over the Securities and Exchange Commission (SEC). However, he conceded that there are certain aspects of the ruling that should provide comfort to crypto enthusiasts.
Main Points:
- Fargel is concerned about the court’s reasoning challenging the SEC’s claims on secondary market trading, including cryptocurrencies.
- He predicts that if an asset is indirectly purchased, investors cannot expect profits from a third party, although this conclusion may be reversible.
- Fargel believes both sides will appeal, with the SEC having a slightly better chance of reversing the ruling on “programmatic sales.”
- Not appealing the ruling may affect pending cases related to Coinbase, Binance, and other crypto exchanges.
Pro-XRP Lawyer Asserts that XRP is Not a Security
In response to Fargel’s comments, pro-XRP lawyer John Deaton chimed in with his thoughts. He expressed concern about prolonged legal battles but saw a silver lining in the midst of uncertainty.
Main Points:
- Deaton believes that even if the SEC were to win an appeal on programmatic sales, the court’s determination that XRP itself is not a security would remain unchanged.
- He doubted whether Ripple would agree to an interlocutory appeal regarding on-demand liquidity (ODL) sales of XRP and emphasized the need for a fair and swift resolution.
- Deaton argued that the SEC’s victory was based on the application of the Howey test to the presented facts and objected to an early appeal becoming the prevailing law for the next few years.
Hot Take
The comments from the retired lawyer and the pro-XRP lawyer highlight the ongoing debate and uncertainty regarding cryptocurrency regulation. While the Ripple victory may provide some reassurance to crypto enthusiasts, the potential for appeals and the implications for pending cases add to the complexity of the situation. It remains to be seen how these legal battles will shape the future of cryptocurrencies.
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