XRP Securities Dispute Reignites: Ripple CTO Says SEC Theory Weakened by Court Ruling

Odaily reported that Ripple CTO Emeritus David Schwartz stated that although the SEC admits XRP itself is not inherently a security, its legal theory still treats XRP as a security because holders expect to profit from Ripple's efforts. Former SEC San Francisco regional office director Marc Fagel explained that the case targets Ripple's sales of XRP, not the XRP token itself. He believes the SEC only claims that Ripple sold XRP in the form of securities.

Schwartz countered that the SEC's argument regarding programmatic sales on exchanges cannot be explained simply as "Ripple selling XRP as securities," since buyers usually do not know the seller's identity or necessarily have exposure to Ripple statements. The court eventually distinguished between different types of transactions, finding that some institutional sales constituted investment contracts, while Ripple's programmatic exchange sales did not constitute investment contracts. Schwartz believes this shows the court narrowed the SEC's broader theory. (News.bitcoin)