Crypto Lawyers Say SEC v Ripple Judge May Find XRP a Non-Security

Crypto lawyer Jesse Hynes believes that the judge overseeing the Securities and Exchange Commission’s lawsuit against Ripple may rule XRP as a non-security digital asset if a clear distinction is made between XRP’s early sales and how it is currently sold. Such a ruling would also be contingent on whether the court decides to investigate XRP’s status as a security.

Hynes, who previously served as the chief legal officer at Gala Games, took to Twitter earlier today to reflect on the latest developments in the SEC’s controversial lawsuit against Ripple. According to Hynes, the court will most likely find that the early-day sales of XRP violated U.S. securities laws. However, he added that the crypto lawyer believes that the judge will “determine that Ripple is no longer violating securities laws in how they are currently doing sales.”

The crypto lawyer stated that there is considerable uncertainty as to whether the court will decide to tackle the question of whether XRP is a security. However, given the SEC repeatedly bringing XRP’s status into question, the court may be compelled to decide the matter. In such an event, Hynes believes that the court will find that XRP cannot be considered an investment contract.

Fellow crypto lawyer Bill Morgan chimed in on Hynes’ Twitter thread and agreed with his assessment of the latest developments in the lawsuit. Morgan stated that a distinction between early and later sales of XRP can lead to a conclusion that digital assets can change from security to not being security.

Morgan highlighted that the argument for XRP’s status as a non-security digital asset may get bolstered by its sales to Ripple’s On-Demand Liquidity (ODL) clients. The crypto lawyer argued that the judge’s recent decision to deny the sealing of the Hinman documents showed that she understood the difference between programmatic and institutional sales of XRP. The Hinman documents contain internal communications and statements made by William Hinman, the SEC’s former Director of Corporation Finance, where he referred to Ethereum being a non-security asset. 

Comments

Post a Comment

Popular posts from this blog

Barry Silbert deletes old tweets amid GBTC selloff

Under-fire Digital Currency Group founder Barry Silbert has apparently deleted a raft of his old tweets . According to his X (formerly Twitter) account, Silbert signed up in October 2011, however, at the time of writing, his timeline shows no tweets or replies older than January 5 this year. Luckily for die-hard Silbert fans, X user Pledditor has screenshotted some of his “greatest hits.” Looks like @BarrySilbert has deleted all his old tweets The good news? I have screenshotted some of his greatest hits pic.twitter.com/GLWPbCf5mN — Pledditor #FixTheFilters (@Pledditor) January 15, 2024 Read more: Former DCG advisor Larry Summers on list of Jeffrey Epstein’s ‘Harvard friends’ Among the messages saved by Pledditor is a classic in which Silbert brands himself a “ complete and total professional failure ,” and one in which he advises Dogecoin holders to convert it to bitcoin. It’s not clear what prompted Silbert’s Social Media cull but he’s currently taking Social Media flak
Read more

Trader Issues Warning on Solana Rival That’s Up 247% in One Month, Updates Outlook on LDO and One Other Altcoin

Image
A widely followed crypto strategist warns that a Solana (SOL) competitor that’s up more than 3x in the last 30 days is flashing signals that it may have printed a short-term top. The pseudonymous analyst known as Altcoin Sherpa tells his 205,700 followers on the social media platform X that while layer-1 blockchain Sei (SEI) is still in an uptrend, it starting to show signs of bullish exhaustion. “Why it looks good: -consolidation and highly bullish high time frame market structure -still bullish on all time frames -EMAs (exponential moving averages) all catching up + other alts looking strong Why it doesn’t: -could be an exhaustion pump here and last big move up -could be rotation from others (SOL/SEI/etc/) to ETH season also known as ARB/LDO/OP -dying volume/some signs of distribution here.”  Source: Altcoin Sherpa/X At time of writing, SEI is trading for $0.785, up over 247% from its 30-day low of $0.226. The trader is also keeping an eye on the price
Read more

Nuant becomes a member of the OpenWealth Association

On January 18, Nuant joined the OpenWealth Association, contributing to advancing digital assets risk management within Swiss banking, WealthTech, and traditional finance, per the information shared with Finbold. In doing so, Nuant recently joined traditional finance entities such as Credit Suisse, LGT, VP Bank, and WealthTech firms like Assetmax and InvestSuite. This strategic partnership represents a noteworthy progression in crypto investment risk management within Switzerland’s financial sector. The OpenWealth Association aims to establish, uphold, and implement open Application Programming Interface (API) standards within the global wealth management community. This commitment aims to facilitate seamless financial data exchange among institutions. Nuant as representative of the CeDeFi sector Cryptocurrency Anthony Scaramucci says Bitcoin to skyrocket to $170,000 by 2025 Cryptocurrency Donald Trump says he’ll ‘never allow a CBDC’ if elected
Read more