The post Ripple Lawsuit Update: Lawyer Says Exchanges Will Not De-list XRP Despite SEC Winning Appeal appeared first on Coinpedia Fintech News
The SEC’s decision to appeal the XRP ruling in the Ripple lawsuit has thrown the cryptocurrency community into a whirlwind of speculation and heated debate. Keep in mind that the SEC isn’t challenging the nature of XRP as a cryptocurrency.
Instead, it aims to reassess Judge Torres’ perspective on Ripple’s programmatic sales and various distributions. This distinction is vital because it doesn’t directly target the legal status of XRP as a cryptocurrency.
The Crypto Community Weighs In
In a captivating Twitter thread, Jeremy Hogan, a renowned lawyer, and crypto advocate, shed light on the ongoing situation. He emphasized that even if the SEC came out triumphant in its appeal, cryptocurrency exchanges would likely keep XRP listed. According to Hogan, the SEC isn’t questioning XRP’s nature but rather the specifics surrounding its sales.
AND… the SEC continues making questionable decisions, requesting an interlocutory appeal.Note that it is NOT appealing whether XRP itself is a security – just its losses on the programmatic and individual sales issues. https://t.co/GziVLp23mT
— Jeremy Hogan (@attorneyjeremy1) August 9, 2023
Debates and Clarifications
Moon Lambo, a well-known XRP enthusiast, expressed concerns over the implications of this appeal for XRP’s status. He wondered if challenging the programmatic sales would indirectly be the same as contesting the cryptocurrency’s legal classification.
Bill Morgan, another legal expert, and lover of crypto, pointed out the notable mention of the SEC vs. Telegram case in Judge Torres’ decision. In this context, digital assets like the gram token were identified as commodities.
John Deaton’s CryptoLaw jumped into the conversation and reinforced this point. They emphasized the lack of “functional equivalents” under the law, suggesting that the SEC’s argument does not hold much weight.
“The Howey factors are clear. They are about OFFERS and SALES- period. Not the asset itself. The embodiment theory was about as dumb as the attorney-client privilege argument over the Hinman emails.”
Yassin Mobarak posed a thought-provoking question about the consequences of identifying programmatic sales of XRP as securities. Responding to these concerns, Hogan highlighted that as long as exchanges source XRP from secondary markets and not directly from Ripple, there should be no reasons for a delisting.
