XRP Securities Dispute Reignites: Ripple CTO Claims U.S. SEC Theory 'Weakened' by Court Ruling

Odaily Planet Daily News - Ripple CTO Emeritus David Schwartz stated that while the SEC acknowledges that XRP itself is not inherently a security, its legal theory still considers XRP as a security on the grounds that holders expect to profit from Ripple's efforts. Former SEC San Francisco Regional Office Director Marc Fagel commented that the case focuses on Ripple's sales of XRP rather than the XRP token itself. He believes the SEC is merely asserting that Ripple sold XRP in the form of securities. Schwartz countered that the SEC's claims regarding programmatic sales on exchanges cannot be explained solely by "Ripple selling XRP as securities," as buyers typically do not know the identity of the sellers and may not have been exposed to Ripple's statements. The court ultimately distinguished between different types of transactions, ruling that certain institutional sales constituted investment contracts, while Ripple's programmatic sales on exchanges did not constitute investment contracts. Schwartz believes this demonstrates that the court has narrowed the SEC's broader theory. (News.bitcoin)