SEC Appeals Decision In Landmark Ripple Case (cnbc.com) 13
On Wednesday, the SEC filed (PDF) to appeal a 2023 court ruling that determined XRP is not considered a security when sold to retail investors on exchanges. The announcement sent the price of XRP tumbling more than 8%. "XRP, which was created by the founders of Ripple, is the native token of the open source XRP Ledger, which Ripple uses in its cross-border payments business," notes CNBC. "It is the fifth-largest coin by market cap, excluding stablecoins Tether (USDT) and USD Coin (USDC)." CNBC reports: Ripple, the largest holder of XRP coins, scored a partial victory last summer after a three-year battle with the SEC. U.S. District Judge Analisa Torres handed down the decision, which was hailed as a landmark win for the crypto industry. Still, while XRP isn't considered a security when sold to retail investors on exchanges, it is considered an unregistered security offering if sold to institutional investors.
Ripple declined to comment but referred to Wednesday evening posts on X by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Alderoty said the company is evaluating whether to file a cross appeal, and called the SEC's decision to appeal "disappointing, but not surprising." The SEC, under Chair Gary Gensler, has become notorious for its refusal to provide clear guidance for crypto businesses, instead opting to regulate by enforcement actions. "XRP's status as a non-security is the law of the land today - and that does not change even in the face of this misguided - and infuriating - appeal," Garlinghouse said on X.
Ripple declined to comment but referred to Wednesday evening posts on X by CEO Brad Garlinghouse and chief legal officer Stuart Alderoty. Alderoty said the company is evaluating whether to file a cross appeal, and called the SEC's decision to appeal "disappointing, but not surprising." The SEC, under Chair Gary Gensler, has become notorious for its refusal to provide clear guidance for crypto businesses, instead opting to regulate by enforcement actions. "XRP's status as a non-security is the law of the land today - and that does not change even in the face of this misguided - and infuriating - appeal," Garlinghouse said on X.
Re: (Score:2)
Regulation is needed, but trying to apply existing securities regulations to cryptocurrency is like shoving a square peg in a round hole.
They are definitionally a security (Score:2)
Crypto can't survive reasonable regulations. Anything that would protect investors or prevent money laundering would instantly cause the emperor's nudity to be revealed
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Regulation is needed, but trying to apply existing securities regulations to cryptocurrency is like shoving a square peg in a round hole.
How about a round peg into a square hole [youtube.com]?
As for your comment, if crypto isn't a security, then what is it? They're using it to buy goods and services. That's about the very definition of a security [cornell.edu] as you can get. To wit:
1) The term “security” means any note, stock, treasury stock, security future, security-based swap, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security, certificate of deposit, or group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a “security”, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.
Are you saying the people who have crypto don't have evidence of indebtedness? That crypto can't be used to purchase any of the above?
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Bitcoin (at least physical bitcoin in your own wallet) isn't a security according to that definition, because it doesn't give you the right to anything.
Ethereum probably is, because you can stake it and get a share of the transaction fees on the network.
Re: (Score:3)
institutional investors (read: rich people)
Actually, the biggest institutional investors are middle-class pension funds.
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institutional investors (read: rich people)
Actually, the biggest institutional investors are middle-class pension funds.
There are three companies (BlackRock, Vanguard, & State Street) that together own more than half of the aggregate value of all shares listed on the NYSE: their shares and derivatives total ~$38 trillion. They (between them) are the largest single shareholder in roughly 90% of listed firms, including Apple, Microsoft, Coca-Cola ... well too many to bother naming them all. It was recently estimated that they will soon control ~40% of shareholder voting rights for US stocks.
Do they then sell financial prod
Still hearing Sanford and Son (Score:1)
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Tired of tons of details that don't matter to me. (Score:2)
Why only for retail investors? What does that alter between the two groups?
I could care less about most of the details included otherwise. It feels like a school report trying to hit the 500 word minimum.