“Professor Lee Reiners testified earlier than Congress just lately, and whereas there’s a lot critique, even this pro-SEC/anti-crypto witness acknowledged the SEC’s loss within the Ripple case.”
Prof. Reiners discussed the SEC vs. Ripple case and cited a footnote from the Programmatic Gross sales of XRP ruling. The ruling said,
“The Courtroom doesn’t handle whether or not secondary market gross sales of XRP represent affords and gross sales of funding contracts as a result of that query just isn’t correctly earlier than the Courtroom. Whether or not a secondary market sale constitutes a suggestion or sale of an funding contract would rely on the totality of circumstances and the financial actuality of that particular contract, transaction, or scheme.”
Prof. Reiners highlighted that the Programmatic Gross sales of XRP ruling offers accredited and institutional buyers the protections of US securities legal guidelines, whereas retail buyers stay with out these safeguards. The Lecturing Fellow at Duke College elaborated,
“Fortunately, Choose Torres’ emphasis {that a} cryptocurrency purchaser within the secondary market should know the id of the vendor to ensure that there to be an expectation of revenue has since been ignored and rejected by a number of federal judges, together with two of her fellow judges within the Southern District of New York.”
Prof. Reiners referred to rulings within the SEC v Coinbase and SEC vs. Terraform Labs instances. Whereas the Coinbase (COIN) case might seize extra headlines, Choose Rakoff, the presiding Choose within the Terraform Labs case, brazenly rejected the Programmatic Gross sales of XRP ruling, surmising,