Top alt coins12/26/2023 ![]() ![]() While Torres maintained that XRP in itself is not a security, many investors appear to be missing the point - what makes an asset a security isn't the asset itself, but the way in which it is sold or marketed. The Thursday ruling may complicate the SEC's campaign against exchanges, as it suggests that exchanges of crypto on the open market might not qualify as sales of securities.Ĭrypto-pegged equities like Coinbase and MicroStrategy - which has heavily invested its corporate balance sheet in bitcoin - were up by 24% and 11%, respectively, as of the Thursday close. Thus, listing them without SEC approvals translated to a violation of securities laws. Much of the SEC's recent actions against exchanges like Gemini, Binance, and Coinbase hinge on the assumption that the assets on the platforms are securities. "I believe it's likely that secondary trading of altcoins on exchanges will be given a pass, and that this is consistent with the laws on the books." "The judge declined to deliver summary judgment on the question of whether programmatic sales of XRP via exchanges constituted the sale of securities, meaning that this question will be litigated further," Cory Klippsten, the CEO of Bitcoin financial services firm , told CNBC. On the other hand, Torres pronounced that "programmatic sales" of the token - or crypto exchange transactions with retail investors - do not qualify as securities. Given they couldn't back out of the deals, there was no possibility for XRP to be viewed as anything other than a speculative investment. That's because investors involved in those sales signed up to agreements, which meant they had to lock up their tokens for a certain period of time. XRP sales to institutional investors, she said, qualify as securities and should have been registered with the SEC. Judge Torres didn't give Ripple a clean victory, ruling that some sales of XRP did constitute investment contracts that pass the so-called "Howey test" - a legal assessment to determine whether an asset is a security. ![]() Southern District of New York District Court Judge Analisa Torres ruled that XRP in itself is "not necessarily a security on its face." Many viewed the agency's lawsuit against the San Francisco-based startup Ripple as a bellwether case for the wider industry - which could potentially force the SEC's hand on defining which of the nearly 20,000 crypto tokens fall under its jurisdiction. ![]() Ripple maintained that its token is not a security - triggering ongoing confusion over which digital coins fall into which regulatory bucket. ![]() In 2020, the SEC alleged that Ripple, its CEO Brad Garlinghouse and the company's executive chairman violated securities laws when it sold $1.4 billion worth of XRP. District Judge Analisa Torres calls that classification into question.įor three years, the SEC and Ripple Labs - who developed the Ripple blockchain and issues the XRP token - have been locked in a protracted courtroom battle over whether the XRP, the world's fourth-largest cryptocurrency, constitutes a security. Personal Loans for 670 Credit Score or Lowerīut the Thursday summary judgement from U.S. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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