Bitcoin News and Finance
Former SEC Official Warns of Reversal in SEC v Ripple Ruling on XRP — Says ‘the Decision Resides on Shaky Ground’ Skip to main content

Former SEC Official Warns of Reversal in SEC v Ripple Ruling on XRP — Says ‘the Decision Resides on Shaky Ground’

Former SEC Official Warns of Reversal in SEC v Ripple Ruling on XRP — Says 'the Decision Resides on Shaky Ground'

The U.S. Securities and Exchange Commission’s former head of internet enforcement has warned that the ruling on the SEC v. Ripple case “resides on shaky ground” and will likely be reversed. “The Ripple decision grants to the institutional investor full SEC protection … However, the retail investor is not granted any SEC protection at all. This seems backwards to say the least,” he stressed.

SEC v Ripple Ruling ‘Troubling on Multiple Fronts’

Former U.S. Securities and Exchange Commission (SEC) official John Reed Stark shared his analysis of the SEC v. Ripple ruling concerning XRP on Linkedin Friday. Stark is currently president of cybersecurity firm John Reed Stark Consulting. He founded and served as chief of the SEC Office of Internet Enforcement for 11 years. He was also an SEC enforcement attorney for 15 years.

“The Ripple decision is troubling on multiple fronts,” he stressed, adding:

IMHO, the decision resides on shaky ground, is likely (and ripe) for appeal, will likely result in reversal and is not necessarily a cause for celebration.

Regarding the offering of securities, the court categorized Ripple’s XRP offering into three distinct categories: institutional sales, programmatic sales, and other sales. Each category received a separate ruling, Stark explained. Ripple Labs’ chief legal officer, Stuart Alderoty, recently broke down the ruling.

The former chief of the SEC Office of Internet Enforcement detailed:

The Ripple decision grants to the institutional investor full SEC protection and all remedies that go along with SEC violations, including rescission, fines, penalties, etc. However, the retail investor is not granted any SEC protection at all. This seems backwards to say the least.

After providing a detailed analysis, Stark warned: “My take is that the SEC will appeal the Ripple decision to the 2nd Circuit and the 2nd Circuit will overturn the district court’s rulings related to ‘programmatic’ and ‘other sales.’”

He predicted that if the SEC does not win after the appeal, there will be “a new crypto-iteration – PBTs – programmatic buyer tokens, available on your friendly neighborhood (and unregistered and unregulated) crypto-trading platform.” According to the Ripple ruling, “PBTs will be exempt from securities regulation because programmatical buyers don’t read anything about the PBTs, don’t know who their buying their PBTs from and don’t know who is issuing the PBTs.”

Stark concluded:

The Ripple decision holds that the same exact token can be a security sometimes but not a security other times. And the more ignorance and willful blindness by retail investors, then the less protection the retail investors will receive. And the less disclosure about the token, then the less liability for the token issuer. That just can’t be right.

Last week, attorney Bryan Jacoutot similarly warned that the ruling on the SEC v. Ripple case “rests on very shaky ground.” Expecting an appeal, he believes that the judge got the law wrong.

What do you think about the analysis by John Reed Stark? Do you think the ruling on XRP and Ripple will be reversed? Let us know in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory