SEC’s all like, “Hey, we might appeal that XRP ruling from the Ripple Labs case, you know?” So, court docs reveal that they’re considering their options for further review, ’cause they ain’t too happy with the outcome. Apparently, the court said XRP ain’t no security when sold to regular folks, and the SEC’s like, “Hold up! That goes against the basic securities laws principles, like the Howey Test.”
Now, the SEC’s got another beef with Terraform Labs and its founder Do Kwon, accusing them of pulling off a massive crypto asset securities fraud, worth billions! And guess what? In this case, they brought up that Ripple Labs ruling as a reference, but the SEC ain’t buying it. They’re saying that the court decision on XRP ain’t in line with Howey and its descendants, especially when it comes to Programmatic and other sales.
Do we really want a judge to ask herself: Does my strict application of the Howey test in this case result in an outcome in 2023 that comports with the policy implications behind a 1934 statute? https://t.co/acMNRc00B6
— John E Deaton (@JohnEDeaton1) July 22, 2023
The SEC’s like, “Hey, we respect the court and all, but we think they got it wrong with Ripple, and we ain’t gonna follow that lead. Nah-ah!” They’re all set to explore their options for further review, and they’re planning to recommend the SEC to do just that.
And check this out, the SEC Chair, Gary Gensler, is feeling some type of way about the whole thing. He’s like, “Yeah, we’re happy that the court acknowledged that a token for big-shot investors is a security, but we ain’t too thrilled ’bout how they treated the retail investors. We’re still mulling it over.” Man, he expressed his disappointment in an interview with Yahoo Finance on July 17.
But that ain’t all! Gary Gensler was doing a talk about artificial intelligence at the National Press Club on the same day, and folks asked him if all these court rulings mean we need better regulations for the industry. And you know what? He didn’t give a straight answer to that one!
The SEC arguing that a court didn’t follow Howey is rich… On its own website, the SEC has acknowledged that Fed courts require commonality & then it goes on to say that it doesn’t require commonality in its analysis or view commonality as a distinct part of Howey. If the SEC’s… https://t.co/CX6Kwfh3cJ
— exlawyer.eth/tez (@exlawyernft) July 22, 2023
So, there you have it, the SEC’s considering their next move after that XRP ruling, and Gary Gensler’s got some mixed feelings about it all. The crypto world’s in for a wild ride, that’s for sure!
