Ripple's move is 'inconvenient on multiple fronts', says former SEC official

According to John Reed Stark, former SEC Enforcement Division attorney, ruling in favor of Ripple Labs" resides on fragile ground".< /p> News Join us on social networks
Former Securities and Exchange Commission official John Reed Stark has spoken out against the recent ruling on the Ripple Lab case, calling the decision “inconvenient on multiple fronts” in a LinkedIn analysis.< /p>
Stark overturned Judge Analisa Torres’ July 13 decision reviewing the grounds on which she ruled in favor of Ripple in a 2020 SEC lawsuit, alleging that the XRP token (XRP) of society was a security.

A few thoughts on the SEC/Ripple decision. https://t.co/A94kHlGI9N pic.twitter.com/lcwWML49kO
— John Reed Stark (@JohnReedStark) July 14, 2023
Judge Torres' verdict says that the XRP token was a security when sold to institutional investors, but it was not a security in "programmatic sales" [public sales] and "other types of sales", such as the distribution of tokens to employees. Ripple also faces a penalty for the alleged violation, as well as cancellation for institutional investors - whose sales would have amounted to $720 million.

In the decision, Judge Torres argues that institutional investors “reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP” , while investors who used exchanges to buy XRP tokens "couldn't reason...

Crypto Jul 17, 2023 0 22 Add to Reading List

Ripple's move is 'inconvenient on multiple fronts', says former SEC official

According to John Reed Stark, former SEC Enforcement Division attorney, ruling in favor of Ripple Labs" resides on fragile ground".< /p> Ripple ruling is 'inconvenient on multiple fronts,' says former SEC official News Join us on social networks

Former Securities and Exchange Commission official John Reed Stark has spoken out against the recent ruling on the Ripple Lab case, calling the decision “inconvenient on multiple fronts” in a LinkedIn analysis.< /p>

Stark overturned Judge Analisa Torres’ July 13 decision reviewing the grounds on which she ruled in favor of Ripple in a 2020 SEC lawsuit, alleging that the XRP token (XRP) of society was a security.

A few thoughts on the SEC/Ripple decision. https://t.co/A94kHlGI9N pic.twitter.com/lcwWML49kO

— John Reed Stark (@JohnReedStark) July 14, 2023

Judge Torres' verdict says that the XRP token was a security when sold to institutional investors, but it was not a security in "programmatic sales" [public sales] and "other types of sales", such as the distribution of tokens to employees. Ripple also faces a penalty for the alleged violation, as well as cancellation for institutional investors - whose sales would have amounted to $720 million.

In the decision, Judge Torres argues that institutional investors “reasonably expected that Ripple would use the capital it received from its sales to improve the XRP ecosystem and thereby increase the price of XRP” , while investors who used exchanges to buy XRP tokens "couldn't reason...